FINANCIAL NEWS

Saudi to log record fiscal deficit in 2015 on oil plunge

09 Sep 2015

(MENAFN) Saudi Arabia is expected to reel under its largest fiscal deficit this year because of a sharp decline in oil prices and higher spending, according to a local bank.

The break-even oil price needed for the Gulf kingdom to balance its budget through 2015 is around USD91.9 but actual crude prices could be as low as USD65 a barrel, said National Commercial Bank (NCB).

The sharp fall in oil prices is projected to depress Saudi Arabia’s actual revenue by a whopping 29 percent to USD197.48 billion this year from USD277.17 billion in 2014, NCB said in a study.

Meanwhile, actual spending is expected to shrink by only around seven percent to USD274.51 billion from USD293.16 billion registered in the same period of the previous year.

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