Saudi posted higher-than-budgeted revenue 9 times in past decade

Saudi Arabia reported higher-than-budgeted actual revenue nine times in the past decade, data compiled by Argaam showed.

Actual revenue came in higher than estimates for the period from 2007 to 2014, with the biggest variation recorded in 2008 at SAR 651 billion, thanks to a record hike in oil prices.

Actual revenue, however, saw its first drop in 2015, ahead of rising again to SAR 528 billion in 2016 – an increase of SAR 14 billion when compared to estimate revenue of SAR 514 billion.

The Saudi finance ministry estimated revenue in the 2017 budget at SAR 692 billion and public expenditure at SAR 890 billion, with an expected fiscal deficit of SAR 198 billion.

The state revenue reached SAR 450.1 billion in the first nine months of 2017, a drop of SAR 241.9 billion when compared to the estimated figure.

Oil revenue accounted for 68 percent, or SAR 307.3 billion of total revenue during the first nine months of 2017, while non-oil revenue represented 32 percent, or SAR 142.8 billion of total revenue.

Oil prices have sharply increased since Q3 2017, crossing a record of $60/bbl during last October.

For expenditure, actual public spending saw the only decline in 2016, coming in SAR 15 billion lower than budgeted. 

The drop was driven by the Kingdom’s launch of the National Transformation Program (NTP) which aimed at boosting the public spending efficiency, along with setting up a management office to cut operating and capital spending.

In 2014, actual expenditure recorded the biggest increase of SAR 255 billion, when compared to estimates.

Actual expenditure came in at SAR 571.6 billion over the first nine months of 2017, compared to the budgeted SAR 318.4 billion.

Saudi Arabia will unveil its 2018 budget today.