Improving Public Debt Management
In the OIC Member Countries
46
Figure 3-2: Gross Public Debt in OIC Member Countries (2015)
Note: Data for Somalia and Syria is not available.
Sources: WEO (2016), IMF Country Reports (see 4.1 Case Studies).
3.1.2 Government Budgets To disentangle the effects of fiscal policy on government debt from exchange rate effects,
government budget balances is considered. The upper panel of Figure 33 shows general and
primary government net lending which excludes interest payments on outstanding debt. The
average government net lending of the OIC countries was positive or balanced in most years
between 2006 and 2012. During the financial crisis in 2009 and 2010, however, the average
general net lending turned negative. Net borrowing started to increase strongly in 2013.
Between 2013 and 2015 average borrowing as a share of GDP increased from 1.2% to 6.3%.
While highincome OIC countries ran large surpluses between 2006 and 2014, the situation
changed dramatically in 2015 and the average budget balance turned negative (see lower left
panel of Figure 33). The average budget balance in lowand middleincome countries has
been negative in all years since 2009. Lowand middleincome countries experienced a further
deterioration of their budget balances in the last years, a development more pronounced in
middleincome countries. Across all regional groups a decline in the budget balance can be
observed, with the average net lending being largest in the Arab group in 2015 (see lower right
panel of Figure 33).
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
Share of GDP (in %)
Brunei Darussalam
Saudi ArabiaAfghanistan
AlgeriaKuwait
Uzbekistan
NigeriaOmanIran
United Arab Emirates
Turkmenistan
Kazakhstan
ComorosIndonesia
Burkina Faso
Turkey
CameroonBangladeshCôte d'Ivoire
Uganda
Qatar
TajikistanAzerbaijanMali
BeninChad
PalestineSuriname
NigerGabon
Sierra Leone
GuineaGuyanaTunisiaDjiboutiSenegalMalaysia
Guinea-Bissau
Togo
BahrainMoroccoPakistan
LibyaIraq
Yemen
Kyrgyz Republic
SudanAlbaniaMaldivesMauritania
Mozambique
EgyptGambiaJordanLebanon