Saudi Arabia Plans Subsidy Cuts as King Unveils 2016 Budget
- Oil made up 73% of government revenue in 2015, ministry says
- Defense spending largest item in 2016 at 213 billion riyals
Saudi Arabia Aims to Cut Spending
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Saudi Arabia said it plans to gradually cut subsidies and sell stakes in government entities as it seeks to counter a slump in oil revenue.
The government expects the 2016 budget deficit to narrow to 326 billion riyals ($87 billion) from 367 billion in 2015. Spending, which reached 975 billion riyals this year, is projected to drop to 840 billion. Revenue is forecast to decline to 513.8 billion riyals from 608 billion riyals.