Saudi finance minister says ‘very optimistic’ on 2016 budget gap

Saudi Arabia’s new finance minister Mohammed Al-Jadaan said he was “very optimistic” about the government efforts to cut the budget deficit expected this year due to slumping oil prices, Reuters reported on Thursday.

 It was too early to say whether this year’s deficit, which is expected to be announced by December-end along with the 2017 budget plan, would be lower than originally budgeted at SAR 326 billion, compared to a deficit of SAR 367 billion in 2015.

"I have just been appointed a week ago and am now looking into many files - the budget, contractor payments and other files ... I am very optimistic," Jadaan added on the sidelines of an economic conference.

Meanwhile, the minister reiterated the government’s commitment to repaying the delayed dues of private-sector companies as soon as possible, which are estimated at a "significant amount of billions" of dollars.

On Oct. 31, King Salman issued a royal decree appointing Al-Jadaan in place of Ibrahim Al-Assaf, who served as the kingdom’s finance minister for nearly two decades.