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FINANCIAL NEWS
Saudi 2015 budget based on USD60 oil price
29 Dec 2014
(MENAFN) According to analysts, Saudi Arabia’s state budget for 2015 is based on an oil price close to current levels of around USD60 a barrel for Brent crude, a shift compared with previous budgets which were based on prices well below market levels, Arab News reported
Despite Saudi not revealing the oil prices it uses to calculate its annual budgets, analysts say that the kingdom based it on oil prices ranging from USD55 per barrel to USD63.
The Saudi 2015 budget plan also projected a record spending of USD229.3 billion, an increase by 0.6 percent from the 2014 budget, while total revenues are projected to drop to USD190.7 billion, resulting in a USD38.6 billion deficit.
“We were realistic in our estimates for next year’s revenues in light of current and expected developments in the oil market. Maybe over the past years I agree we were conservative, but this year we were realistic,” Saudi’s Finance Minister said.
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