Home GCC Saudi Arabia Saudi reduces Q1 deficit by more than half The kingdom has forecast a SAR198bn deficit this year by Staff Writer April 24, 2017 Saudi Arabia posted a significantly smaller budget deficit in the first quarter than projected, according to reports. Muhammad Al-Tuwaijri, deputy minister of economy and planning told state-run Ekhbariya TV that the deficit for the first three months of the year was SAR26bn ($6.9bn) from a projected SAR54bn ($14.39bn). This followed a sizeable deficit reduction last year from SAR367bn in 2015 to SAR297bn ($79bn) in 2016. Read: Saudi Arabia cuts 2016 budget deficit, to boost 2017 spending The kingdom has forecast a SAR198bn deficit this year. “The trade deficit is expected to drop this year and possibly to record as a surplus due mainly to the decline in imports and the rising value of exports,” Saudi Arabian Monetary Authority governor Ahmed Al-Kholifey also told the broadcaster. On saturday, Saudi Arabia’s King Salman made a rare reversal in cuts to financial allowances for civil servants amid signs of improving economic conditions in the kingdom. Read: Restored Saudi public sector perks may avert recession 0 Comments