Saudi may see inflation from spending hike
Riyadh, April 9, 2011
Any increase in state spending will normally result in inflationary pressure, but will have a positive impact in the long term, Saudi Arabia's finance minister said on Saturday.
'If there is a large size of spending that exceeds the power of spending then according to economic theories there will be inflationary pressures,' Ibrahim al-Aassaf told al-Arabiya television in an interview.-Reuters