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Table 8: Fiscal consolidation measures through 2020 leave undisclosed financing gap Fiscal measure Annual revenue raised (US$bn) Annual revenue raised (% of GDP) Impact on inflation (ppt) Remark Non-oil revenue measures 100 15.8 - NTP target Fees on excess foreign worker quotas 10 1.6 - NTP target Green-card like program 10 1.6 - NTP target VAT 10 1.6 5 NTP target Subsidy reform 30 47 NTP target Natural gas feedstock for petrochemicals 2.5 0.4 - BofA ML assumption Domestic crude 20.8 3.3 - BofA ML assumption Gasoline 1.4 0.2 0.5 BofA ML assumption Diesel 1.9 0.3 - BofA ML assumption Other measures 40 6.3 - NTP target Land tax 11 17 - BofA ML assumption Remittance tax 2.3 0.4 - BofA ML assumption Income tax on expatriates 3.9-7.8 0.6-1.2 - BofA ML assumption Sin tax on tobacco 0.7 0.1 0.1 BofA ML assumption Sin tax on sugary drinks 1.4 0.2 0.4 BofA ML assumption Memo: Undisclosed revenue financing gap 16.8-20.7 2.7-3.3 - BofA ML assumption Cost savings Annual savings (US$bn) Annual savings (% of GDP) 20% cut to on-budget non-oil subsidies 0.2-0.8 0.1-0.5 - BofA ML assumption 5% cut to the wage bill 6.4 1.0 - NTP target Cost increases Annual cost increase (US$bn) Annual cost increase (% of GDP) NTP costs (US$71.5bn) 14.3 2.2 NTP target Source: National Transformation Plan, BofA Merrill Lynch Global Research Chart 18: Breakdown of electricity consumption by sector Chart 19: Water consumption by sector anh | %, Municipal, 11% 9% Industh¥Qs % 16% | 50% 17% | | Agriculture, 88% m Residential = Commercial m Industry = Government m Other Agriculture Source: SAMA, BofA Merrill Lynch Global Research. Data as of 2015. Source: UN, BofA Merrill Lynch Global Research. Data as of 2010. Budgeted defence spending — up or down Localization policies in the defence industry could help cut imports (total defence imports of US$9.8bn equivalent to US$1.5bn or 6% of total imports in 2015, according to consultancy IHS) and conserve Fx reserves, but we expect this to be a slow and

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