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Economy

Saudi Arabia expects budget deficit to drop to less than 0.5 percent by 2023

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Saudi Arabia expects its deficit will drop to less than 0.5 percent by 2023, according to estimates released as part of the Kingdom’s budget for 2021.

Saudi Arabia’s budget figures for 2021 were announced on Tuesday, with revenues expected at 849 billion riyals, while spending is expected at 990 billion riyals.

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The expected budget deficit to be recorded next year will be 141 billion riyals, resulting in a ratio of the deficit to GDP reaching 4.9 percent.

The total public debt expected in 2021 will be 937 billion riyals.

King Salman said that the coronavirus pandemic had affected the global economy, indicating that this year has been a difficult year globally.

The finance ministry said the budget reflected “the ability to adopt appropriate policies to balance between growth, economic stability and fiscal sustainability in the medium and long term.”

Saudi Arabia expects the economy to shrink by 3.7 percent this year but to swing back to a 3.2 percent growth next year.

Read more:

Saudi Arabia to announce budget for 2021

Saudi Crown Prince: Kingdom’s economy proves ability to face COVID-19 repercussions

Saudi Arabia says 2020 budget deficit will rise to $79 bln amid pandemic