Saudi Arabia unveiled a 990 bn riyals ($263.9 bn) budget for 2021 that will see spending cut by 7.3% and said deficit will jump to around SR298 bn this year as the kingdom tackles the impact from low oil prices and the coronavirus pandemic.
Gross domestic product is projected to shrink by 3.7% this year but to return to a growth of 3.2% in 2021. Revenues for 2020 are expected to stand at SR770 bn and SR849 bn next year.
The budget “aims to provide assurance about the government’s ability to manage the crisis, gradually restore the pace of economic growth, strengthen the social benefits and subsidies schemes and continue to provide basic services,” the finance ministry said Tuesday in a statement.
Oil revenues for 2020 are estimated to be SR412 bn, down by 30.7% compared to the previous year, while non-oil revenues are expected to increase from SR332 bn to SR358 bn, “mainly due to the collection of exceptional profits from government investments,” according to the statement. Public debt expected to increase to SR937 bn next year from SR854 bn this year.
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