The $26 Billion Question and What Else to Expect in #Saudi Budget - Bloomberg

The $26 Billion Question and What Else to Expect in Saudi Budget - Bloomberg:

How Aramco’s record initial public offering will affect the world’s biggest oil exporter in 2020 is the biggest question hanging over Saudi Arabia’s annual budget ahead of Monday’s presentation. 

While the government is tightening its purse strings to balance the books by 2023, the proceeds from Aramco’s IPO of almost $26 billion could be used to soften the blow to the biggest Arab economy. In 2017, Crown Prince Mohammed bin Salman said at least half of the cash will be deployed at home by the Public Investment Fund.

Whether that spending will be earmarked for 2020 or spread over several years is something Finance Minister Mohammed Al Jadaan may clarify at a news conference after King Salman approves the budget this afternoon. The extent of riday’s decision to cut oil output deeper next year is another issue that could affect the ministry’s economic projections.