Saudi Arabia announced 2016 budget

Saudi Arabia has announced plans to cut government expenditure and reform its public finance system after decreasing oil prices resulted in an annual budget deficit of around SAR 370 billion. The 2016 budget plan aims to cut deficit to 326bn riyals.

Next year’s budget projects spending of SAR 840 billion, down from SAR 975 billion spent this year.

Revenues next year are forecast at SAR 514 billion, down from 608 billion in 2015.

In its budget statement, the finance ministry said it would adjust subsidies for water, electricity and petroleum products over the next five years. Additionally, the government reviews the possibility of VAT introduction in the Kingdom.

 

 

 

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