Saudi Arabia yesterday reported a third quarter fiscal deficit of 7.3 billion riyals ($ 1.95 billion), a sharp drop from 48.7 billion riyals in the same period a year ago, thanks to rising oil revenues. The deficit during the second quarter was 7.36 billion riyals.
Saudi Finance Minister Mohammed Al-Jadaan said in a statement that the improvement in financial performance was reflected by the decrease in the deficit with a positive growth of oil and non-oil resources compared to the same period of 2017. "Regardless of the positive indicators for the third quarter, there are challenges in public finance to maintain what has been achieved in the way of reforms.
The kingdom, which launched a number of economic reforms aimed at diversifying its oil-dependent economy, expects the deficit to hit 195 billion riyals or 7.3 percent of gross domestic product this year, down from 230 billion riyals last year.
Government revenues in the third quarter rose by 57 percent to 223.3 billion riyals, with oil revenues rising by 63 percent to 153.95 billion riyals, driven by higher crude oil prices worldwide. Non-oil revenues rose by 45% on quarterly basis to 69.3 billion riyals.
