Saudi 2019 budget deficit expected to hit SAR 131 bln

Saudi Arabia on Tuesday announced its state budget for 2019 - the largest budget in its history - with revenues estimated at SAR 975 billion, a 9 percent rise year-on-year (YoY), and public spending estimated at SAR 1.106 trillion, an increase of 7 percent YoY.
 

Oil revenue is forecast to grow by 9 percent YoY to SAR 662 billion in 2019. Non-oil revenue is expected to rise 8.7 percent YoY to SAR 313 billion.

Read: Saudi 2019 budget boosts spending

The budget deficit is expected at SAR 131 billion, a decline of over 4 percent YoY. The deficit is projected to account for 4.2 percent of the Kingdom’s GDP versus 4.6 percent in 2018.

Saudi Arabia’s 2019 GDP growth is forecast at 2.6 percent versus 2.3 percent in 2018.

The Saudi inflation rate is likely to decelerate to 2.3 percent in 2019 and 2.1 percent in 2020, compared to the expected 2.6 percent in the current year. 

The expat levy revenue is estimated at SAR 56.4 billion next year, compared to SAR 28 bln in 2018, while the 2019 value-added tax (VAT) revenue is projected at SAR 47 billion, compared to SAR 45.6 billion in 2018.

The 2019 excise tax revenue is forecast to drop to SAR 10 billion, from estimated SAR 12 billion this year.

Public debt is projected at SAR 678 billion, or 21.7 percent of gross domestic product (GDP), while reserves are estimated at SAR 496 billion, or 15.9 percent of GDP, according to figures released by the Ministry of Finance.

The Kingdom’s capital spending is estimated at SAR 246 billion, versus SAR 205 billion in 2018. It also represents 22.2 percent of total public spending.