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EXPENDITURE DOWN $36bn

Saudi plans spending cuts; sees big drop in revenue

RIYADH, December 28, 2015

Saudi Arabia, its finances hit by low oil prices, announced plans to shrink a record state budget deficit with spending cuts and a drive to raise revenues from sources other than oil.

The government of the world's top oil exporter ran a deficit of SR367 billion ($97.9 billion) in 2015, the Council of Economic and Development Affairs said on Monday.

Its 2016 budget plan aims to cut that to SR326 billion ($86.88 billion), reducing pressure on Riyadh to pay its bills by liquidating assets held abroad.

Next year's budget projects spending of SR840 billion ($224 billion), down from SR975 billion ($260 billion) spent this year. The original budget plan for 2015 projected spending of SR860 billion ($229 billion).

Revenues next year are forecast at SR514 billion ($137 billion), down from revenues of SR608 billion ($162 billion) in 2015. This year's original budget plan envisaged SR715 billion ($190 billion) of revenues. - Reuters




Tags: Saudi | Budget | Spending |

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