Saudi Arabia has reduced its budget deficit to SR 297bn, it emerged today, as the Kingdom announced its annual budget and tough new measures aimed at achieving a financial balance by 2020.
The deficit reached its highest level in 2015 “but is now manageable”, according to 2017 budget documents released on Thursday.
The crash in oil prices produced a deficit of SR 366 billion in 2015. The estimated deficit for 2016 was SR 326 billion, but the actual number was SR 297 billion, around 9 percent less than forecast.
“The government has been able to finance the deficit by drawing from reserves and surpluses, in addition to borrowing SAR 200.1 billion on international debt markets,” the budget documents said.
The Saudi Budget 2017 lays down a financial strategy on the basis of foresight over the next five years.
It outlined plans to raise gasoline and electricity prices, and to increase water prices in 2019.
New monthly fees that will apply to expatriate workers were also announced today.
