Alistithmar trims Saudi deficit forecast to SAR 235 bln

Saudi Arabia’s actual budget deficit is expected to be SAR 235 billion in 2016, down from the SAR 326 billion projected earlier, Alistithmar Capital said in a report.

Actual revenues are expected to hit SAR 532 billion, up from SAR 514 billion, while expenses may decline to SAR 767 billion from SAR 840 billion.

Alistithmar has forecast revenues of SAR 627 billion in 2017 in light of the increase in the average price of oil to $53 per barrel.

The government has implemented budget cuts that helped narrow the deficit margins in 2016, the brokerage said, adding it expects the kingdom to boost national investments and launch more revenue generating projects.

In 2015, Saudi Arabia posted a record budget deficit of SAR 367 billion, where revenues amounted to SAR 608 billion and expenditure came to SAR 975 billion.