Saudi Arabia Cuts Expenditure in its 2021 Budget to Narrow its Budget Deficit

Saudi Arabia’s Finance Ministry has announced a 2021 Budget expenditure of SAR 990 billion, 7% lower than the estimated spending for 2020. This decline comes as Saudi Arabia seeks ways to lower its significant deficit caused due to lower petroleum revenues and the impacts of COVID-19, according to media reports.

The Finance Ministry stated that this proposed decline in expenditure within the 2021 Budget reflected the ability to implement policies to balance between economic stability, growth and fiscal sustainability in the medium-to long-term. With total revenue for 2021 anticipated at SAR 849 billion (higher than the SAR 770 billion estimated for 2020), Saudi Arabia anticipates a budget deficit of SAR 141 billion (4.9% of gross domestic product), as revealed in the bud...