Saudi Arabia Withdraws $65bln in First Half of 2015 Due to Budget Deficit

Saudi Arabia withdrew 244 billion riyals ($65.1bln) from its general monetary reserve during the first five months of 2015 to cover the country’s budget deficit, a Saudi official said.

Governor of the Saudi Arabian Monetary Agency (SAMA) Fahad Al Mubarak said at a press conference that the Kingdom intends to use the fund to meet the expected budget deficit due to the decline in oil prices, the Middle East Monitor reported.

90 percent of Saudi Arabia’s revenues come from oil sales.

Mubarak said his country has also issued government bonds worth 15 billion riyals ($4bln) during the last two months, expecting Saudi public debt to rise during the year 2015.

Saudi Arabia estimated its expenditures for the year 2015 to reach 860 billion riyals ($229 bln) with revenues estimated at 715 billion riyals ($191 bln), resulting in an expected deficit of 145 billion riyals ($39bln), equivalent to 0.5 percent of gross domestic product at current prices.

The price of crude oil reached $57.75 a barrel on Thursday compared with $115 in June 2014.