A surge in oil prices and production will turn a projected Saudi fiscal deficit into a large surplus despite an expected increase of more than 40 per cent in the Gulf kingdom’s actual spending, according to a local study.
The Riyadh-based Jadwa Investment said it had massively revised up its previous estimates for Saudi Arabia’s budget surplus from SR127 billion ($33.8 billion) to SR226 billion ($60 billion) as a result of higher revenue.
The projected surplus this year will be more than double the SR109 billion ($29 billion) balance recorded in 2010 and in sharp contrast with the SR87 billion ($23 billion) deficit in 2009, when oil prices were relatively low.
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