The Strategist

Saudi Arabia approves draft budget for 2020 with deficit of almost $ 50B

12/10/2019 - 09:20

King of Saudi Arabia Salman bin Abdulaziz Al Saud approved the Kingdom’s draft budget for 2020 with expenditures of 1.02 trillion riyals (almost $ 272 billion) and revenues of 833 billion riyals (more than 222.1 billion dollars); deficit estimated at 187 billion riyals ($ 49.8 billion), the Saudi state news agency SPA said.

According to the project, expenses will be 7.8% lower than in 2019. At the same time, the kingdom's budget for 2020 includes lower oil revenues in the amount of 513 billion riyals (136.8 billion dollars) compared with 602 billion (160.5 billion) this year. Economic growth is projected at 2.3% for the next year.

“The reforms undertaken over the past three years have begun to bring positive results in the financial and economic sectors. The policy of saving finances and the development of financial management has led to a reduction in the budget deficit. According to forecasts, in 2019 it should be about 4.7% of GDP compared to 5.9% in 2018 and 9.3% in 2017," said Crown Prince Mohammad bin Salman, who iss initiating economic reforms in the kingdom, commenting on budget options.