Connect with us

Hi, what are you looking for?


Saudi Arabia’s budget records a deficit of more than 7 billion riyals this year

Saudi budget deficit

Saudi Arabia’s budget recorded a deficit of 7.4 billion riyals ($2 billion) during the first quarter of 2021, as oil prices and the rest of the revenues failed to meet current expenditures.

Budget revenues increased in the first quarter by 7% on an annual basis, to reach 204.8 billion riyals ($54.6 billion), according to data released by the Saudi Ministry of Finance.

This result came dispute the decline in oil revenues by 9% to 116.6 billion riyals due to Saudi Arabia’s production cuts in compliance with the OPEC+ agreement, as of May 2020.

Saudi budget deficit

On the other hand, non-oil revenues increased by 39% to 88.2 billion riyals. Saudi Arabia had raised value-added tax from 5% to 15%, as of July 2020.

The country’s public debt increased by 6% to 901.4 billion riyals ($240.4 billion) at the end of the first quarter, compared to 853.5 billion riyals by the end of 2020.

Saudi Arabia, the world’s largest oil exporter, is currently suffering from a decline in its financial revenues as a result of the decline in oil prices due to pandemic impact on demand.

The Saudi budget recorded a deficit in the 2020 budget of $79.5 billion, after achieving revenues of $205.5 billion while spending $285 billion.

The government announced that the spending during 2021 will be at $264 billion in return for $226 billion in revenue, expecting a deficit of $38 billion.

For its part, the International Monetary Fund expected the real GDP of Saudi Arabia to grow by 2.1% this year and 4.8% in 2022.

The fund said that non-oil growth is expected to reach 3.9% this year and 3.6% in 2022.

While the real oil GDP is expected to contract by 0.5% in light of the production levels agreed upon in the OPEC+ agreement.

Saudi Arabia’s GDP contracted by 4.1% last year, compared to a growth of 0.3% in 2019, under pressure from the pandemic and the decline in oil prices.

Last December, Saudi Arabia approved 2021 budget with 990 billion riyals ($263.91 billion), a decrease of nearly 7% from 2020.

Keep reading: Saudi Arabia Explores Building Its Own Electric Cars Manufacturer


In an interview with ET Now, Dabur India Director Mohit Burm..


The 147th Open championship will be at Carnoustie Golf Club in Scotland. Jan Kruger/R&A Golfers ..


Enlarge Oliver Morris/Getty Images) In response to an Ars re..


Enlarge/ You wouldn't really want to use Nvidia's ..