Saudi Arabia’s Budget Deficit Increased to $98bn

Saudi Arabia’s budget deficit swelled to $98bn in 2015 as the kingdom, which is the world’s biggest oil exporter, counted the cost of falling crude oil prices.

In the first budget under King Salman, the kingdom said revenues reached 608bn riyals (£108.7bn; $162bn), down 15% on official expectations.

Spending for the year hit 975bn riyals, some 13% more than forecast.

Oil prices have plunged from a five-year high of $125 a barrel in March 2012 to just $37.18 now.

Saudi Arabia said that oil revenues, which make up 77% of the total figure for 2015, are down 23% compared to last year.

It is the largest member of the Opec oil-producing cartel and has refused to cut output, which has forced companies in other countries to halt projects and lay off staff.

Spending on military and security projects reached 20bn riyals in 2015, Saudi Arabia said, following its intervention in Yemen as well as action against militant group Islamic State.

The majority of the increase in overall spending was on salaries to civil and military Saudi employees.