VOL. XLI

No. 28

13-July-1998

OPEC

Declining Oil Prices And Budget Revenues

In Saudi Arabia, the Council of Ministers has appointed a ministerial committeeto review and rationalize public sector expenditures in light of the sharp drop in oilrevenue. When the government first unveiled its 1998 budget, revenue was projected at$47.5bn and expenditure at $52.3bn, leaving a resulting deficit of $4.8bn. Although theSaudi authorities did not announce a specific oil price assumption in the budget, the...