By Sultan Al-Raddad
Riyadh-Mubasher: Saudi Arabia's budget for the new fiscal year will likely reflect rationalisation of government spending, especially spending on projects, said economist Mohammed Al-Omran.
Al-Omran told Mubasher that the government is expected to boost revenues through imposing added-value tax on some commodities and lifting subsidy gradually on some sectors such as energy and fuel.
The kingdom's budget for 2014 reflected deficit of SAR 45 billion, near the average forecasts in Mubasher poll. This was the first deficit recorded by the kingdom since 2009.
Public revenues are expected to reach SAR 715 billion and expenditures are likely to reach SAR 860 billion, with a deficit of SAR 145 billion, according to the ministry of finance.
Technical analyst Mohammed Al-Maimoni projected the deficit to reach SAR 380-422 billion in 2015 on lower oil prices rather than public spending.
He added that the kingdom succeeded in using the available instruments to reduce the deficit, indicating that the issuance of bonds was the best option especially as the kingdom has a good credit rating.
Translated by Abdul Maguid Aboshahla
