Saudi 2024 budget forecasts $21bn deficit but GDP set to rise

Saudi 2024 budget forecasts $21bn deficit but GDP set to rise

Saudi Arabia has approved its 2024 budget, which forecasts a deficit of SAR79 billion ($21.1 billion), accounting for 1.9 percent of the country’s gross domestic product (GDP). The estimated total revenues are SAR1.17 trillion, while total expenditure is forecast to be SAR1.25 trillion, the finance ministry said in a statement. The kingdom projected a budget deficit […]Saudi Arabia has approved its 2024 budget, which forecasts a deficit of SAR79 billion ($21.1 billion), accounting for 1.9 percent of the country’s gross domestic product (GDP).

The estimated total revenues are SAR1.17 trillion, while total expenditure is forecast to be SAR1.25 trillion, the finance ministry said in a statement.

The kingdom projected a budget deficit of SAR82 billion for 2023. Revenues are expected to reach SAR1.19 trillion, while expenditure will hit SAR1.28 trillion.

Saudi Arabia’s annual budgets stem from “very conservative” oil revenue estimates, meaning deficits are not due to fluctuating oil prices but a deliberate decision to boost spending, finance minister Mohammed Al Jadaan said at a budget briefing.

“We actually intentionally decided to spend more and cause the deficit knowingly, consciously” on the belief that deficits of up to 3 percent are “absolutely fine… if you spend that money right”, Agence France Presse reported, citing the minister.

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