The new leadership has made a start. Spending cuts in the last months of 2015 stopped the
deficit from soaring to more than 20% of GDP. The 2016 budget includes steep rises in the
prices of petrol, electricity and water (though they remain heavily subsidised). The prince
pledges to move to market prices by the end of the fiveyear
period. He is also committed to
new taxes, including a valueadded
tax of 5%, sin taxes on sugary drinks and cigarettes, and
levies on vacant land.