Saudi Arabia recorded budget surplus six times since 2007

17/12/2017 Argaam Special

 

Saudi Arabia has posted a budget surplus six times over the last decade, but run deficits in four years, according to data compiled by Argaam.

 

The largest surplus was recorded in 2008 at SAR 581 billion, thanks to a 75 percent rise year-on-year (YoY) in oil revenue, driven by a remarkable hike in crude prices to $133 per barrel (bbl) during H1 2008.

 

Cash surplus ranged between SAR 88 billion and SAR 374 billion in 2007 and for the period from 2010 to 2013.

 

Meanwhile, the biggest fiscal deficit of SAR 366 billion was witnessed by the Kingdom in 2015 as oil revenue fell 51 percent YoY to SAR 447 billion – the second deficit following SAR 66 billion in 2014.

 

The third straight deficit was run in 2016 at SAR 297 billion, on a 26 percent fall in oil revenue to SAR 329 billion, the data added.

 

Last year, the Saudi government tapped domestic and international debt markets to finance its budget deficit.

 

Accordingly, the Kingdom’s total public debt increased to SAR 316.5 billion, compared to SAR 142 billion in 2015.

 

Saudi Budget’s Actual Revenue and Expenditure (SAR bln)

Period

Revenue

Expenditure

Surplus/deficit

2007

643

466

177

2008

1,101

520

581

2009

510

596

(87)

2010

742

654

88

2011

1,118

827

291

2012

1,247

873

374

2013

1,156

976

177

2014

1,044

1,110

(66)

2015

616

978

(362)

2016

528

825

(297)

 

Saudi Arabia had earlier expected a budget deficit of SAR 198 billion by the end of this year.

 

The Kingdom’s deficit stood at almost SAR 121.5 billion in the first nine months of the year, down 40 percent YoY. Revenue totaled SAR 450.1 billion, while expenditure reached SAR 571.6 billion.

 

Saudi Budget Deficit Financing in 9M 2017 (SAR bln)

Item

Financing

From current account 2016

38.5

From reserve account

30.0

From domestic loans

37.0

From international loans

33.8

Total financing

139.3

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