Saudi Arabia projects $53billion deficit in 2017

Saudi Arabia, world’s biggest oil exporter has projected a 2017 Budget deficit of about US $53 billion and said that deficit in 2016 will be $79 billion, down 8.9% from 2016’s budget forecast. Expenses next year will reach $237 billion against revenues of $184 billion US. In the wake of 2016 record deficit, Saudi Arabia had frozen major building projects, cut Cabinet ministers’ salaries and imposed a wage freeze on civil servants. The main reason for fall of revenue was due to fall in poil prices, which were above $100 a barrel in 2014 and sank below $40 in 2016, but recovered towards end of 2016 and traded below $55.