Dec 25, 2014 8:48 AM
Saudi to dig into reserves for the 2015 budget
The Associated Press
RIYADH, Saudi Arabia (AP) Saudi Arabia's Cabinet has endorsed a budget for 2015 that projects a slight increase in spending and a significant drop in revenues due to sliding oil prices, resulting in a $39 billion deficit.
The kingdom says it will dig into its reserves to cover the difference between $229.3 billion in projected expenditures and $190.7 billion in revenues for the coming fiscal year.
The new budget approved Thursday reflects an expected drop in revenues of around $88 billion from $278.9 billion in 2014. It also shows an increase in spending of about 0.6 percent from the previous year.
Saudi-based investment firm Jadwa Investment says the deficit will be financed comfortably using the Saudi Arabian Monetary Agency's huge stock of net foreign assets, which totaled $736 billion at the end of November.