There is common sense that fiscal deficit represent a rival challenge to any fiscal
policy mainly with a collapse of public revenues, the absence of financial markets,
and a slowdown of GDP. Thus there are many risks facing budget stability. We
be
lieve that fiscal situation will deteriorate dramatically as a result of; recent
political crises, international sanctions, incapability to access to external resources of
funding. and Central Bank of Syria role in financing not fiscal deficit, but public
expenditures. Furthermore, the central bank depends mainly on an intervention in
foreign exchange market for preventing the collapse of Syrian Lira, which exhausted
foreign assets.
