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Saudi Arabia’s Quarterly Budget Deficit Widens to $8.9 Billion

  • Total spending up 5% as government tries to stimulate economy
  • Non-oil revenue fell 4% despite increase in tax revenues
This Is Where Saudi Arabia Gets Its Oil

Photographer: Simon Dawson/Bloomberg

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Saudi Arabia’s budget deficit widened in the second quarter as officials ramp up spending to stimulate a sluggish economy.

The budget gap of 33.5 billion riyals ($8.9 billion) compared to 7.4 billion riyals in the same period last year, the Finance Ministry said in a statement on Tuesday. Spending rose 5% from the second quarter last year, with significant jumps in capital spending and outlays on subsidies and social benefits. Oil revenue dropped 5% year-on-year and non-oil revenue declined 4%.