Inflation & Prices
Saudi Arabia Budget Slips into Deficit as Spending Accelerates
Visitors view the city skyline from the skybridge of the Kingdom Center in Riyadh, Saudi Arabia.
Photographer: Jeremy Suyker/BloombergThis article is for subscribers only.
Saudi Arabia reported a deficit of 2.91 billion riyals ($770 million) in the first quarter of the year as the government increased spending on salaries and economic diversification projects.
Government income rose in the first quarter, driven by higher non-oil revenues, but was outpaced by a nearly 30% rise in spending, according to a budget report from the Ministry Of Finance published Sunday. The government “maintains a great ability to continue the expansionary fiscal policy and consider accelerating projects,” according to a seperate statement on the official Saudi Press Agency.