What will be the Future of Oil Economies



When we went to Saudi Arabia, that was the real land of milk and honey. 

There was no income tax, there was no GST. There was no indirect tax, who just made money and just kept it. Most of these even had it better. They just got in the cost of living other ones, and they could just get pocket money. 

They used to buy cars, and keep driving zipping around and have illicit liquor, and go on big accidents.

 So these were the privilege lottle those days, please And gay came across a report that says the prey of collapse of oil has been difficult things for Saudi and the people of Saudi Arabia. 

They are having a projected budget deficit of $9 billion in the first quarter. The Saudi currency is pegged to the US. So when the banner races, this all DDL has to race with it. So its monetary policy is tight that is tied to that of the US, which means low cost of oil means that they have no money to spend. 

What have they done, finally, so the Arabia has been pushed to pass the brink. Last year they they were two years back those they introduced back that was 5%. On goods consumed. That looked to be a nominal tax back to this quarter. What they have done is they have said there is no more cost of living elevens. 

The King cannot pay the elephants for the youth and he has also seen suspected, increase the VAT three tags that is there GST is now at 15% as good as India's, this means, so, these are going to have a lot less money, this will have the protections for India also, which means, Indians are going to lose 15 per pay 15% for their goods and services. 

This means, most of these would like to do the work that Indians are doing and more Indians will come back home, especially those who are not in skilled jobs. This means, a lot of high paying Indians will come looking for jobs in India.

 This is going to affect konkan and Kerala maximum but is also a great problem for India. Because India has for X has been supported by remittances last year's India's remittances into India was $82 billion. 

This has kept our forex reserves very high at 470 billion dollars. We can expect a dramatic fall in the fall in amount of remittances coming from Western Asia. 
The guns jobs, which we had once the prized possession, and Gulf bridegroom's were in great demand will soon be a thing of past.

 Many Indians will make a beeline back here. more tragic is the case of Indians who are set up business vehicles, they will find going very tough, because the contract with the Saudis is they make a share of the profits. 

But all the time there is a loss. It's all on the Indians, tough time for the Indians, Pakistanis there has to be so South Asians. It is high time that our government makes a contingency plan for those who are coming back. 

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