#Saudi Quarterly Budget Deficit Widens as Capital Spending Jumps - Bloomberg

Saudi Quarterly Budget Deficit Widens as Capital Spending Jumps - Bloomberg:

Saudi Arabia’s budget deficit widened in the second quarter as officials ramp up spending to stimulate a sluggish economy.

The budget gap of 33.5 billion riyals ($8.9 billion) compared to 7.4 billion riyals in the same period last year, the Finance Ministry said in a statement on Tuesday. Spending rose 5% from the second quarter last year, with significant jumps in capital spending and outlays on subsidies and social benefits. Oil revenue dropped 5% year-on-year and non-oil revenue declined 4%.


The data suggests that a long-promised injection of government cash is finally materializing as officials try to boost economic growth in the world’s largest oil exporter. Gross domestic product is expected to grow 1.7% this year, a second year of expansion after contracting 0.7% in 2017, according to data compiled by Bloomberg.