Saudi Arabia, the world’s largest crude exporter, on Thursday announced a 2015 budget with a huge $38.6 billion deficit due to the sharp decline in oil prices but still raised spending.
A statement read on state-run television said spending for 2015 is projected at 860 billion riyals ($229.3 billion) and revenues at 715 billion riyals ($190.7 billion).
Projected spending is slightly higher than the 855 billion riyals planned for this year, but revenues are 140 billion riyals lower than estimates for 2014, said the statement read after a cabinet session chaired by Crown Prince Salman bin Abdulaziz.
The budget shortfall is the first deficit projected by the OPEC kingpin since 2011 and the largest ever for the kingdom.
Over the past decade, Saudi Arabia overspent budget projections by more than 20 percent and if the trend is maintained next year, the deficit will be much higher.

The price of oil, which makes up more than 90 percent of public income in Saudi Arabia, has lost about half of its value since June due to a production glut, weak global demand and a stronger US dollar.
Saudi Finance Minister Ibrahim al-Assaf said this month that Riyadh will continue massive public spending despite the sharp decline in oil prices.
Assaf said the budget comes during “challenging” global economic conditions but reserves built over many years have given Saudi Arabia “depth and a line of defence that come in handy in times of need”.
In royal decrees issuing the new budget, King Abdullah called for “rationalisation of spending” and for the “accurate and efficient implementation of the budget”.
“You are aware of the slowdown in growth in the global economy and the events in the petroleum market that led to the sharp fall in oil prices,” the statement quoted the king as saying.
If oil prices remain at the current level of about $60 a barrel for benchmark Brent crude, Saudi Arabia is expected to lose half of its oil revenues of $276 billion posted in 2013.
No figures have yet been provided for this year’s budget results.
The International Monetary Fund has warned that due to the drop in oil price, Saudi Arabia will post a budget deficit this year.
But the wealthy kingdom, which pumps around 9.6 million barrels per day, can easily tap into huge fiscal buffers, estimated at $750 billion, to meet the budget deficit.

King Abdullah authorised the finance minister to draw “from the reserves” to meet the deficit or through borrowing.
Ratings agency Standard and Poor’s lowered its outlook for Saudi Arabia to stable from positive following the slide in oil prices.
But S&P also affirmed its high ratings for Riyadh over the “strong external and fiscal positions” it has built up in the past decade.

- See more at: http://www.vanguardngr.com/2014/12/saudi-projects-big-deficit-2015-oil-price-drop/#sthash.yDCTQseS.dpuf

They should contact Buhari, he can help them stabilize world oil price.

Yeye dey smell with the people's APC general.

The general self get idea deficits/deficiency

The illiterate Nigerians on this forum have already blamed GEJ for the impacts of crude price drop in Nigeria.

Nigeria's biggest problem is neither poverty nor corruption.... its illiteracy.

Is the Saudi riyals in shambles like the naira?

Flets:
The illiterate Nigerians on this forum have already blamed GEJ for the impacts of crude price drop in Nigeria.

Nigeria's biggest problem is neither poverty nor corruption.... its illiteracy.

What are the impacts of the fall on the Saudi economy and its citizens, you read the minister say they will continue massive spending on infrastructure.

Careful when you point fingers.

Flets:
The illiterate Nigerians on this forum have already blamed GEJ for the impacts of crude price drop in Nigeria.

Nigeria's biggest problem is neither poverty nor corruption.... its illiteracy.

Mr literacy, can you please tell us what happened to Nigerians when oil prices doubled over the past 16 years?
If you want us to look over the past 6 years of GEJ, what happened to the revenue from high oil prices? considering that subsidy was removed albeit partially

But S&P also affirmed its high ratings for Riyadh over the
“strong external and fiscal positions” it has built up in the
past decade.

What has the pdp built over the past 16yrs?

Obiagelli:


What has the pdp built over the past 16yrs?

Merry Xmas

and I hope you can see that not even Saudi Arabia is under the illusion they can stabilise oil prices

Obiagelli:


What are the impacts of the fall on the Saudi economy and its citizens, you read the minister say they will continue massive spending on infrastructure.

Careful when you point fingers.

What impact? unless you are a parasite waiting for government handouts . The price of oil means zero to the average Nigerian.

they shud vote buhari. he will stabilise oil price for them

buharinomics

olapluto:

Mr literacy, can you please tell us what happened to Nigerians when oil prices doubled over the past 16 years?
If you want us to look over the past 6 years of GEJ, what happened to the revenue from high oil prices? considering that subsidy was removed albeit partially

Ask your state government, how much was their allocation in 1999 and how much they have collected in the past 16 years. Lagos state alone has a budget in 2014, higher than Nigeria as a country in 1998 and 1997 combined together.

atlwireles:


What impact? unless you are a parasite waiting for government handouts . The price of oil means zero to the average Nigerian.

The naira? Seriously. How much is a bag of rice today even with all the yeye revolution in the agriculture sector

Obiagelli:


The naira? Seriously. How much is a bag of rice today even with all the yeye revolution in the agriculture sector

At least we are not standing on a long queue to buy the yeye rice.

mikeansy:


Merry Xmas

and I hope you can see that not even Saudi Arabia is under the illusion they can stabilise oil prices

Oil prices is fair at 60 dollars, the Saudis are not worried because the last 10 years was a boom and they had been saving. Some other opec members pushed for cut in production to stabilize prices, at some point, everyone will come back to their senses to keep oil price stable. Russia is the target in case you didn't know

atlwireles:


At least we are not standing on a long queue to buy the yeye rice.

We weren't standing on the queue to buy fuel and other made in Nigeria products.

Obiagelli:

We weren't standing on the queue to buy fuel and other made in Nigeria products.

I'm not a fan of revisionist like you. But today is xmas, I will withhold fire.

atlwireles:


I'm not a fan of revisionist like you. But today is xmas, I will withhold fire.

The second time you are labelling me with Marxism, I will hold fire for Xmas too

Obiagelli:

Oil prices is fair at 60 dollars, the Saudis are not worried because the last 10 years was a boom and they had been saving. Some other opec members pushed for cut in production to stabilize prices, at some point, everyone will come back to their senses to keep oil price stable. Russia is the target in case you didn't know

But Buhari did not discuss any of this. He did not know!

Btw Saudi opposed cutting oil prices at OPEC not because they have made enough money but because they realise that OPEC does not have the clout anymore they had in the 1970s. Any attempt to reduce production by OPEC members will not change the prices rather their market share will be replaced by supply from Non-OPEC members like US and Russia. It will also keep prices high at a level that will allow US/Russia remain competitive. Low cost oil has come to stay. The boom is over!

The only thing Nigeria can do is explore how Saudi are able to achieve low cost oil production. They produce at $5 per barrel while we produce at $25 - $30 dollar a barrel. That's criminal. We also need to invest in local refining of crude and invest more in exporting unleaded petrol and other by-products of crude.

The oil boom is over. we need to re-adjust. Buhari does not know this and that's why we say his ideas are stuck in the 1970s.

mikeansy:


The only thing Nigeria can do is explore how Saudi are able to achieve low cost oil production. They produce at $5 per barrel while we produce at $25 - $30 dollar a barrel. That's criminal. We also need to invest in local refining of crude and invest more in exporting unleaded petrol and other by-products of crude.

This is quite interesting, i never knew this. Anyways you can't claim to know the oil industry better than buhari.

Obiagelli:


This is quite interesting, i never knew this. Anyways you can't claim to know the oil industry better than buhari.

ok

when will u wish me merry xmas?

atlwireles:


What impact? unless you are a parasite waiting for government handouts . The price of oil means zero to the average Nigerian.

A very uninformed and narrow minded view.

mikeansy:


ok

when will u wish me merry xmas?

Oops sorry about that, merry Christmas brother.

Obiagelli:


Oops sorry about that, merry Christmas brother.

same to you!!!!!!

nduchucks:


A very uninformed and narrow minded view.

Come back tomorrow, I will edit my reply to you.