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Tue 30 Jul 2019 06:54 PM

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Saudi Arabia's budget deficit widens to $8.9bn in Q2

Oil revenue in Saudi Arabia dropped 5% year-on-year in the second quarter of 2019 while non-oil revenue declined 4%

Saudi Arabia's budget deficit widens to $8.9bn in Q2

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.