Higher Oil Prices Slowing Saudi Reform?

In October, the IMF released a report projecting that by 2020 Saudi Arabia may get a budget boost of more than $90 billion from new taxes and the planned reform of fuel subsidies and prices.

This fiscal boost is expected to come as a result of the Kingdom's efforts to restructure its economy,  away from oil to improve its income statement after a plunge in crude prices triggered a budget deficit of more than 16% of GDP last year.

According to the IMF's calculations, non-oil revenue from a value-added tax and excises on tobacco and energy drinks is forecast to reach 4.8% of gross domestic product -- estimated by the IMF to be $722 billion in 2020. Meanwhile, gains from energy price...