Economics
Saudi Arabia’s Budget Deficit Narrows in Second Quarter on Oil, Taxes
- Spending remains restrained as revenue rises significantly
- Government over-borrowed in first half, raising $14 billion
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Saudi Arabia’s budget deficit narrowed to 4.6 billion riyals ($1.2 billion) in the second quarter, boosted by higher oil prices and a surge in tax revenue.
The world’s largest crude exporter saw oil revenue rise 38% in the period from April to June compared to the same period last year, while non-oil revenue tripled, reaching 116 billion riyals, according to a finance ministry statement. That was largely driven by increased tax revenue after the government tripled value-added tax to 15% last July-- and the comparison with a low base during last year’s lock-down. Spending remained restrained, at around 253 billion riyals.