Saudi expected to announce budget tomorrow
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Saudi expected to announce budget tomorrow

Saudi expected to announce budget tomorrow

The budget is expected to include fuel and electricity price increases

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Saudi Arabia is expected to announce fuel and electricity price increases alongside its general budget for the 2017 fiscal year on Thursday, according to reports.

Local newspaper Al-Watan cited government sources for date after The Council of Economic and Development Affairs discussed the draft general budget in Riyadh on Monday.

The sources said they expect the government to increase fuel prices by 40 per cent and electricity tariffs by around 20 per cent, according to the publication.

Saudi is expected to post a SAR258.75bn ($68bn) deficit in its current budget, according to estimates from banks, with revenues of $137bn and expenditure of $205bn expected.

The forecast deficit is $17bn less than the $87bn projected by the government, which issued its first international bonds earlier this year worth $17.5bn.

Read: Saudi sets record with mammoth $17.5bn bond issue

The budget figures are expected to show a smaller deficit than expected and potentially allow the kingdom to press ahead with further diversification efforts focused on job creation and growing the private sector.

Read: Saudi’s King Salman acknowledges restructuring measures are ‘painful’


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