Saudi Arabia announced a 990 billion riyal ($263.91 billion) budget for 2021 on Tuesday, around 7% less than estimated spending for this year, as the world’s biggest oil exporter seeks to tame a huge deficit caused by lower petroleum revenues and the coronavirus crisis.
The kingdom expects to post a deficit of 298 billion riyals this year, or 12% of gross domestic product (GDP), as crude revenues are slated to drop by over 30%, and 141 billion riyals or 4.9% of GDP next year, according to a budget statement. It plans to nearly balance its budget by 2023.
The finance ministry said the budget reflected “the ability to adopt appropriate policies to balance between growth, economic stability and fiscal sustainability in the medium and long term.”
Saudi Arabia expects the economy to shrink by 3.7% this year but to swing back to a 3.2% growth next year.
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