Saudi Arabia has said it expects to run a budget deficit in 2010 for the second consecutive year as the government on Monday approved the largest budget on record to accelerate economic growth and foster job creation.
The finance ministry forecast revenue of SR470bn ($125.3bn) and expenditure of SR540bn ($144bn) in fiscal year 2010. The world’s biggest petroleum exporter did not reveal the oil price assumptions in the budget, but economists estimate an average of $50 a barrel.
“The deficit is manageable. With current oil prices they will end up with a surplus in 2010, but the government often budgets conservatively,’’ said John Sfakianakis, Middle East economist at Banque Saudi Fransi-Credit Agricole Group.
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