The Saudi cabinet approved the new general budget for the year 2002 on Saturday, December 8. The budget carries a 45-billion riyal ($12 billion) deficit, composed of revenues set at SR 157 billion, offset by SR 202 billion in expenditures.
The Saudi government, which derives over 75 percent of its revenues from oil sales, estimated that for the current year of 2001, the budget will eventually reach a $6.7 billion deficit, having been previously forecasted to level out at zero.
As the world's largest oil exporter, the kingdom has been adversely affected by low oil prices this year. Having experienced nearly two decades of consecutive deficits, Saudi Arabia recorded a 22.7-billion riyal budget surplus in the year 2000, due to stronger oil price. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
