Saudi Arabia unveils record deficit as it succumbs to oil price rout

A brutal sell-off in oil prices has forced Saudi Arabia’s government to post the largest budget deficit in its history, as the state’s revenues have crumbled.
The country’s deficit rose to 367bn riyals (66bn), after government spending rose 13pc above officials’ plans in the wake of declining oil prices and a war with Yemen. A Saudi official said that the deficit was ‘considered an acceptable figure’ under the circumstances.
Stock markets reacted positively to the government’s spending plans, as investors had feared far worse news was to come, anticipating an overshoot well in excess of 13pc. The total deficit stood at 16pc of the economy’s size, while analysts had expected a gap of 20pc. The Tadawul All Share Index made a daily gain of 0.7pc.

This post was published at The Telegraph