Syria faces two interrelated medium-term challenges posed by the prospective decline in its oil reserves. The recently approved five-year plan (FYP) laid down a comprehensive strategy to address these challenges. Syriaas public finances are headed for challenging times in the coming 10a15 years. Large fiscal deficits have marked the economic history of many developed and developing countries alike during the 1970s and 1980s, with damaging consequences to their economies. Although financial markets can help keep the deficit bias in check, market discipline has proved mostly inadequate.The above proposed calibration of the PPS reform is a function of the prevailing international oil prices. ... Mitigating the impact of phasing out PPS by increasing civil service wages, another option under consideration, would not be advisable for the following reasons. ... Third, as argued above, the design of the compensation scheme should allow flexibility, such that the level could be adjusted in line withanbsp;...
|Title||:||Syrian Arab Republic|
|Author||:||International Monetary Fund|
|Publisher||:||International Monetary Fund - 2006-08-09|