Saudi Arabia’s budget deficit widened in the second quarter as capital spending increased while oil and non-oil revenue fell.
The budget gap of SR33.5 billion ($8.9 billion) compared to SR7.4 billion in the same period last year, the Finance Ministry said in a statement on Tuesday.
Oil revenue dropped 5 percent year-on-year while non-oil revenue declined 4 percent, despite a significant rise in tax revenue.
Spending rose 5 percent compared to the second quarter last year, with a 27 percent increase in capital expenditures and a 71 percent jump in subsidies.
Officials have been trying to stimulate the economy of the world’s largest oil exporter since it contracted in 2017, promising to inject cash into the government-dependent private sector.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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