RIYADH —
Saudi Arabia approved its 2022 budget on
Sunday, projecting a surplus for the first time since oil prices collapsed in
2014.
اضافة اعلان
King Salman said the improved fiscal situation for the world's
biggest oil exporter comes "after the Kingdom of Saudi Arabia has overcome
the economic repercussions and the exceptional stages of the coronavirus
pandemic".
Cited by the Saudi Press Agency, he said total expenditures
were budgeted at 955 billion Saudi riyals ($255 billion) and revenues estimated
at 1.045 trillion riyals, giving a surplus of 90 billion riyals.
Riyadh's projections come with higher global crude prices,
despite worries about the
Omicron coronavirus variant which is spreading
worldwide.
Crude prices finished higher on Friday to post their best
week since August.
Brent North Sea crude for February delivery rose to $75.15.
In New York, West Texas Intermediate crude for January delivery increased to
$71.67 a barrel.
Economic experts have said Saudi Arabia needs a crude price
of about $80 a barrel to balance its budget.
At a press conference, Finance Minister Mohammed Al-Jadaan
did not answer AFP's question about the price per barrel on which the budget
projections were based.
The kingdom produced about 9.8 million barrels per day in
October, according to the
Organization of the Petroleum Exporting Countries.
If the projections are realized, it will be the first time
that the Arab world's largest economy will see a surplus since 2013, when it
reached 206 billion riyals.
"We aim to place further attention to the security and
health of citizens and residents, human development, the continuation of
economic growth and diversity, and financial sustainability," King Salman
said.
Crown Prince Mohammed bin Salman said that "the
financial and economic results and indicators confirm that we are progressing
positively".
Since 2016, the kingdom has embarked on a wide-ranging
program to diversify its economy away from oil, which still generates more than
two-thirds of Saudi public revenues.
After prices collapsed in 2014 from more than $100 a barrel,
the kingdom borrowed heavily and drew from its reserves to plug the shortfall.
It also resorted to austerity measures like cutting
subsidies on fuel and power and imposing a value added tax.
In September, Jadaan had forecast a 2022 budget deficit of
52 billion riyals.
Saudi Arabia was left reeling last year from low oil prices
when global demand collapsed during the pandemic and led to an economic
downturn.
The kingdom estimated its 2020 deficit at 298 billion riyals
but for this year the shortfall is seen at 84 billion riyals, to end years of
deficits.
Jadaan said a surplus is expected in 2023 and 2024 as well.
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