Budget deficit narrows in 2017 on Saudi economic reforms

Saudi Arabia has cut the state fiscal deficit from 12.8 percent of gross domestic product (GDP) in 2016 to 8.9 percent in 2017, backed by ongoing fiscal reforms, state news agency SPA reported.

"The Saudi government is on the right track, managing economic growth efficiently in 2017 despite global challenges,” said Finance Ministry official Yarub Al Thunyan.

The Kingdom will continue to undertake initiatives that boost economic growth, support the private sector, and improve services offered to citizens in the fields of education, health, social development, municipality, housing, and public transport, Al Thunyan said.

However, more investments are required in the industrial and real estate sectors, he added.

The government has implemented a series of measures to improve the efficiency of public spending, the official said, noting that the finance ministry has been able to fulfill its targets this year, such as the disbursement of private sector dues in less than 60 days.

The ministry has been able to settle over 90 percent of the total receivables within 45 days, Al Thunyan said.

Saudi Arabia will announce the state budget for 2018 today.

The Kingdom posted a fiscal deficit of SAR 121.5 billion in the first nine months of 2017, with SAR 450.1 billion in revenue and SAR 571.6 billion in expenditure during the same period.