Oil price drop: Saudi Arabia projects deficit in budget

Saudi Arabia announces a 2015 budget with a huge deficit of $38.6 billion

RIYADH: Saudi Arabia announced a 2015 budget with a huge deficit of $38.6 billion on Thursday as the world’s largest crude exporter begins to feel the impact of decline in oil prices. Saudi Arabia has insisted OPEC will not move to strengthen global oil prices despite a drop of nearly 50% since June. The budget for next year sees spending at 860 billion riyals ($229.3 billion) and revenues at 715 billion riyals ($190.7 billion). Finance Minister Ibrahim al-Assaf said the kingdom was in good enough shape to see out the downturn. “Despite the deficit, we will continue to spend on development projects... We have the buffers to bear the drop.” Assaf said everyone agreed oil would rebound and that it was only a question of when.

Published in The Express Tribune, December 26^th, 2014.