NCB expects SAR 190 bln Saudi fiscal deficit in 2017

Saudi Arabia is expected to post a fiscal deficit of SAR 190 billion this year, the National Commercial Bank (NCB) said in June Economic Brief.

The Kingdom is likely to generate around SAR 700 billion in revenue, including SAR 480 billion and SAR 220 billion in oil and non-oil revenues, respectively, according to country’s largest bank by assets.

The Saudi inflation rate is seen to reach 2.5 percent this year, on higher prices of services and commodities.

Saudi Arabia’s FY17 budget was written, factoring in an estimated oil price at $50/bbl.

As oil prices may reach an average of $51/bbl in 2017, trade deficit may be cut to 3.2 percent of GDP.

According to the ministry of finance, the Kingdom’s revenue is projected to reach SAR 692 billion in 2017, while public spending is estimated to hit SAR 890 billion. The ministry expects fiscal deficit to reach SAR 198 billion this year.

In Q1, the Kingdom cut its deficit by 71 percent year-on-year (YoY) to SAR 26.2 billion, while total revenues came in at SAR 144 billion, surging 72 percent year-on-year.