Saudi 2018 budget to be Kingdom's largest; deficit expected at SAR 195 bln

Saudi Arabia announced its state budget for 2018, the biggest ever in the Kingdom’s history despite cheaper oil prices.

The new budget set 2018 revenue at SAR 783 billion and public spending at SAR 978 billion, with a projected deficit of SAR 195 billion.

Oil revenue growth is expected to reach SAR 492 billion 2018, an increase of 12 percent compared to this year’s SAR 440 billion. Non-oil revenue, on the other hand, is expected to grow 14 percent to SAR 291 billion compared to SAR 256 billion in 2017.

“The Kingdom has cut oil dependence to almost 50 percent and targets fiscal balance by 2023,” King Salman said on Tuesday while announcing the budget.

The new budget will continue spending on various development sectors, housing allocations to push economic reforms and provide more job opportunities for Saudi citizens, King Salman said.

The Kingdom will continue to raise spending on the basic services, including infrastructure, housing and municipal services, social development, education, and public transport, he said, adding that the government’s capital expenditure will increase by 13 percent.

"The government is targeting to cut next year's budget deficit to below 8 percent of gross domestic product (GDP), despite the budget​'s​ expansionary size," Crown Prince Mohammed bin Salman said on Tuesday.