Saudi 2023 budget deficit at $22bn as oil revenue dips

Saudi 2023 budget deficit at $22bn as oil revenue dips

Saudi Arabia recorded a budget deficit of SAR81 billion ($21.6 billion) in 2023 in line with expectations, as expenditure increased against a backdrop of falling oil revenue, the finance ministry said on 15 February. Total expenditure increased by 11 percent annually to SAR1.3 trillion last year, as revenues reached SAR1.2 trillion, according to data released […]Saudi Arabia recorded a budget deficit of SAR81 billion ($21.6 billion) in 2023 in line with expectations, as expenditure increased against a backdrop of falling oil revenue, the finance ministry said on 15 February.

Total expenditure increased by 11 percent annually to SAR1.3 trillion last year, as revenues reached SAR1.2 trillion, according to data released by the finance ministry.

Oil revenues fell 12 percent year-on-year to SAR755 billion as the kingdom reduced oil output in an effort to sustain prices in a weak global market, while non-oil revenues rose 11 percent year on year to SAR458 billion, accounting for 40 percent of the total last year.

This week’s announcement is in line with the kingdom’s December 2023 budget statement, where the government expected expenditure and revenues to be SAR1.3 trillion and SAR1.2 trillion, respectively, with the deficit estimated at SAR82 billion.

The government has forecast a deficit of