Jadwa expects Saudi budget deficit to decline to SAR 67 bln in 2021

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Jadwa Investment expects Saudi Arabia's budget deficit to decline to SAR 67 billion, or 2.1% of the gross domestic product (GDP), in 2021.

This is lower than the Ministry of Finance's forecast of SAR 85 billion for 2021 as a whole.

Government revenue totaled SAR 243 billion in Q3 2021, up 13%, or SAR 28 billion, year-on-year (YoY). An improvement in global oil prices led to oil revenue rising 60% on a yearly basis, resulting in the segment’s contribution rising to 61% of total revenue during the quarter.

According to data compiled by Argaam, Saudi Arabia’s Ministry of Finance announced in October the Q3 2021 budget performance report. Total revenue stood at SAR 696.2 billion, while total expenditure reached SAR 701.6 billion, reflecting a budget deficit of SAR 5.4 billion in the first nine months of the year.

For Q3 2021, revenue reached SAR 243.4 billion, while total expenditure stood at SAR 236.7 billion with a budget surplus of SAR 6.7 billion.