Saudi budget deficit narrows as revenues, spending climb

RIYADH: Saudi Arabia reported a fall in its budget deficit that went down 38 per cent in the second quarter of the current year from the first quarter even as its spending increased 19 per cent with the revenues also increasing 22 per cent, Arab News quoted the Ministry of Finance, as saying, in its quarterly budget report.

Spending by the Saudi Arabian government climbed to SR252 billion from SR212 billion in the previous quarter, while state revenues rose to SR248 billion from SR204 billion in the first quarter of the year, according to the official data, leaving its budget deficit at SR4.6 billion, down from SR7.4 billion in the previous quarter.

The revenues increased on higher oil sales, as well as income from non-oil activities, the data showed.

“[The] state budget is a barometer of a nation’s financial health. The Saudi Q2 budget report results indicate a more robust economic situation with more disciplined fiscal measures, as well as business rebound in the kingdom from the pandemic,” independent economist Mohammed Ramady told Arab News.

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