Saudi Arabia has posted budget deficits only 4 times since 2000

Saudi Arabia has recorded a budget surplus 11 times over the last 15 years, but run deficits only in four years, according to data compiled by Argaam.

The largest surplus was posted at SAR 581 billion in 2008, thanks to a 75 percent year-on-year (YOY) hike in oil revenue to SAR 983 billion due to a significant increase in crude prices to $133 per barrel (bbl) during H1-2008.

Cash surplus ranged between SAR 100 billion and SAR 400 billion for the periods from 2004 to 2007, and from 2011 to 2013.

Meanwhile, the kingdom saw the biggest fiscal deficit in 2009 to SAR 434 billion as oil revenue dropped 56 percent due to lower demand following the 2008 global financial crisis, the data added.

In 2001 and 2002, Saudi Arabia faced deficits of SAR 27 billion and SAR 21 billion, respectively on lower oil revenue after a steep fall in the commodity’s prices due to the Sept. 11 attacks, along with economic recession in the United States (US), Japan and Europe.

Another deficit of SAR 66 billion was recorded in 2014, when revenue and expenditures stood at SAR 1.04 trillion and SAR 1.11 trillion, respectively.

According to data compiled by Argaam, revenues rose over the last decade due to higher oil prices and output. Expenditure, especially capital spending, also rose as the government invested in infrastructure development.