#SaudiArabia expects 2022 budget surplus after years of deficit | Reuters

Saudi Arabia expects 2022 budget surplus after years of deficit | Reuters

Saudi Arabia said on Sunday it expected to post its first budget surplus in nearly a decade next year, as it plans to restrict public spending despite a surge in oil prices that helped to refill state coffers hammered by the pandemic.

After an expected fiscal deficit of 2.7% of gross domestic product this year, Riyadh estimates it will achieve a surplus of 90 billion riyals ($23.99 billion), or 2.5% of GDP, next year - its first surplus since it went into a deficit after oil prices crashed in 2014.


"The surpluses will be used to increase government reserves, to meet the coronavirus pandemic needs, strengthen the kingdom's financial position, and raise its capabilities to face global shocks and crises," Crown Prince Mohammed bin Salman was quoted as saying by Saudi state press agency SPA.

The world's biggest oil exporter plans to spend 955 billion riyals next year, a nearly 6% expenditure cut year on year, according to a budget document.

Riyadh plans to reduce military spending next year by around 10% from its 2021 estimates, the budget showed, a sign that the cost of the military conflict in neighbouring Yemen has started to ease.