Saudi Arabia is on track to eliminate its budget deficit by 2023 and plans to increase spending by more than 7 percent next year.
The Kingdom’s economy was hit hard by the 2014 oil price crash, but the shortfall in its budget is expected to continue to narrow, the Ministry of Finance said on Monday.
The deficit — the difference between government revenues and spending — is predicted to be SR148 billion ($39.5 billion) in 2018. That is expected to decline to SR128 billion next year and enter positive territory by 2023, the ministry said.
The Minister of Finance, Mohammed Al-Jadaan, said he expected a “steady decline in the deficit until balancing out in 2023.”
Al-Jadaan said initiatives to develop non-oil revenues, more efficient spending, and an improvement in the targeting of subsidies had helped to narrow the deficit in the first half of 2018.
Saudi Arabia is largely dependent on oil revenues but steps are under way to diversify the economy, boost the private sector, and place a greater focus on everything from education to entertainment, and tourism to transport. Read More...
Source: Arab News