VOL. XLII

No. 02

11-January-1999

SAUDI ARABIA

Saudi Budget Reveals $12Bn Deficit But Few Surprises

The Saudi budget released on 29 December 1998 in both English andArabic offered few surprises. As expected, the 1999 budget, approved on 28 December 1998,foresees a 144% increase in the budget deficit to SR44bn ($11.7bn) or 9% of GDP on theback of a 32% decline in revenues (the lowest level in a decade) and a 16% decline inexpenditures, thwarting all prospects of a balanced budget by the year 2000 (...