Saudi Arabia set to announce budget for 2022, deficit likely to be narrowed down

Saudi Arabia set to announce budget for 2022, deficit likely to be narrowed down

Saudi Arabia is expected to announce its budget for 2022 and the actual budget figures for the current year 2021 on Sunday, with experts predicting the Kingdom’s budget deficit likely to be narrowed down to 52 billion riyals ($13.8 billion) in 2022 as compared to SR85 billion in 2021.

Positive expectations prevail regarding Saudi Arabia’s expected and actual budget figures given the improvement in oil prices and the expected tail end of roadblocks related to the outbreak of the coronavirus globally which has been positively reflected on the recent uptick in demand for oil and the movement of trade and markets.

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Financial experts who spoke to Al Arabiya predicted that Saudi Arabia is heading to record its lowest fiscal deficit in eight years in the 2021 budget, as the budget deficit is expected to decrease this year to 85 billion riyals.

Experts said the expected announcement of the lowest fiscal deficit in eight years is mainly thanks to the rise in oil prices from the levels of 2020, which witnessed prices at the level of $16/barrel in April 2020.

In November, Ratings agency Moody's changed Saudi Arabia's outlook to “stable” from