The $259bn question: Saudi Arabia's 2019 budget under the microscope:
Saudi Arabia’s 2019 budget is undoubtedly ambitious — but is it realistic? That was a key question being asked on the sidelines of a forum held on Wednesday in Riyadh, where government ministers discussed how next year’s spending plan would play out.
According to the budget, Saudi Arabia will boost spending by about 7 percent to $295 billion in 2019, yet also reduce the deficit by 4.2 percent. Oil revenues are expected to reach $176.5 billion, compared with $162 billion this year.
That means oil is forecast to account for 68 percent of total state revenues next year. But as the Finance Ministry has not disclosed the average oil price on which its forecasts are based, it raises the question: Is the revenue forecast attainable, given the recent crash in energy prices?
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