Saudi Arabia to increase infrastructure spending in 2010

Thursday, 07 January 2010 14:11:23 (GMT+2)

Saudi Arabia has recently released the country's largest-ever annual budget for the 2010 fiscal year. Based on modest demand and pricing estimates for oil, the Saudi government expects revenues to reach $125.3 billion in 2010, while expenditures are foreseen to total approximately $144 billion, thus resulting in a projected deficit of $18.7 billion. The new budget indicates an increase of 14 percent from the $126.6 billion allocated in public spending in 2009 and equals almost three times the public spending allocation in the 2005 budget.

Significantly, the new budget includes an unprecedented $69.3 billion for new and existing infrastructure projects in power generation, construction and transportation, representing a 16 percent increase from 2009. The emphasis on development projects is designed to increase employment across all economic sectors, while at the same time continuing major campaigns to overhaul much of the country's infrastructure systems. The 2010 budget will mark a $9.3 billion increase in projected capital expenditure compared to 2009.

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