By the end of last year, Saudi Arabia expected a budget deficit in 2017. As the country's budget deficit is expected to reach about $52.8 billion, which is the fourth year in a row that the Saudi Arabia budget recorded a deficit.
Saudi Arabia's king "Salman bin Abdulaziz Al Saud" said: "This budget comes at a time of a highly volatile economic situation, which led to a slowdown in world economic growth and a drop in oil prices that impacted our country".
Saudi budget .. Between yesterday & tomorrow
Saudi economy- the world's largest producer and exporter of oil- was highly affected by the severe fluctuations that occurred in the global oil markets over the past two years, which led to a decline in oil prices by almost half.
Accordingly, the Government of Saudi Arabia indicated that the deficit in 2016 budget recorded $79.1 billion, which is equivalent to 297 billion riyals, down 8.9% from what was expected at the beginning of the current fiscal year, which amounted to about $87 billion.
On the revenue side, Saudi Arabia has successfully increased the revenues of the current fiscal year, which amounted to 528 billion riyals compared to the previous expectations, which amounted to 513.7 billion riyals.
For expenses, it has amounted to 825 billion riyals, which is lower than the previous forecast for about 1.8%.
It is expected that the spending rates in Saudi Arabia's 2017 budget will reach about 890 billion riyals, while the value of projected revenues is expected to reach nearly 692 billion riyals, which means a total deficit of about 198 billion riyals.
It should be noted that during 2015, Saudi Arabia posted a high budget deficit, which reached $98 billion riyals.
kSA's economy: solid and strong
Despite the difficult economic conditions experienced by the global economy in recent times, which devastated the economies of many countries around the world, Saudi King Salman bin Abdulaziz noted that the economy of Saudi Arabia remained strong and it has sufficient strength to face the current economic and financial challenges, thanks to the prudent fiscal policies taken by the State