Saudi Arabia is projected to record a budget deficit of 65 billion riyals ($17.3 billion) in fiscal 2009, its first in over five years, as the Arab economic powerhouse ratchets up efforts to support domestic growth in the face of plummeting oil prices and a global economic meltdown.
In a new budget unveiled on December 24, Monday, the Ministry of Finance announced that the government expenditures were budgeted at 475 billion riyals for fiscal 2009, and total revenues were estimated at 410 billion riyals.
Despite the drop in cost and revenue, analysts said the world's top oil exporter appeared to send clear signals particularly to its private sector, which was proceeding undaunted with growth plans amid the economic woes that have hammered the world this year. As mentioned in the budget, in spite of the decline in oil price during the last part of 2008, this year's budget will continue to focus on optimizing the use of available resources and giving priority to projects that ensure sustainable and balanced development as well as more employment opportunities and job creation.