By Bernd Debusmann Jr
Saudi Arabia's 2020 budget projected a shortfall of $50b for the year
Saudi Arabia might have a fiscal deficit of 7.4 percent in 2020, and 8.1 percent deficit in 2021, according to S&P Global analysts.
According to Reuters, S&P analyst Zahabia Gupta said that the fiscal deficits of the GCC states – including Saudi Arabia – will increase in 2021 as a result of higher spending and lower oil prices.
The forecast assumes oil prices of $60 a barrel this year, and $55 per barrel next year, Gupta added.
Saudi Arabia passed its 2020 budget in December, in which it projected a shortfall of $50 billion for year, up $15 billion from its 2019 budget.
It predicted next year's deficit would grow to 6.4 percent of GDP, up from 4.7 percent in 2019.
Spending was set at $272 billion, down 7.8 percent on 2019 estimates, while revenues were estimated at $222 billion, also lower by 14.6 percent.