RIYADH: Saudi Arabia projected its 2020 budget deficit would soar to around $79 billion, the finance ministry said Tuesday, as the world’s top crude exporter reels from a coronavirus-led economic downturn. Late last year, the kingdom projected a budget deficit of $50 billion for 2020, up $15 billion on 2019. Riyadh has posted a budget deficit every year since the last oil price rout in 2014, prompting the petro-state to borrow heavily and draw from its reserves to plug the shortfall. Saudi Arabia plans to spend 990 billion riyals ($264 billion) in 2021, a sharp reduction compared to this year, according to the budget statement. Saudi Arabia needs a crude price of about $80 a barrel to balance its budget, economic experts say, higher than the current price of around $50.

Source: Manila Times December 17, 2020 16:52 UTC