Saudi Rulers to Curb Wages as Kingdom Confronts Oil Slump

[jakeXT]

Saudi authorities pledged to curb wages and push ahead with investments next year as the world’s largest oil exporter seeks to counter the effect of tumbling crude prices on the economy.

The government said it expects the budget deficit in 2015 to widen to 145 billion riyals ($39 billion), from 54 billion riyals this year, the Finance Ministry said today. That amounts to about 5 percent of gross domestic product, according to Arqaam Capital, a Dubai-based investment bank.

The Finance Ministry said the government will continue to invest in areas such as education and health care, while exerting “more efforts” to curb spending on wages and allowances, which make up about 50 percent of spending. The kingdom will resort to borrowing and use of reserves to plug the budget deficit, the state-run Saudi Press Agency said, citing Economy Minister Mohammad Al-Jasser.

Projected revenue will drop more than 30 percent next year to 715 billion riyals, while expenditure was set at 860 billion riyals, budget data show. Spending in 2014 is estimated to have been 1.1 trillion riyals, 29 percent higher than target.

http://www.bloomberg.com/news/2014-12-25/saudi-arabia-sees-wider-2015-budget-deficit-as-oil-prices-plunge.html

[delrem]

1. Of course, that doesn't include expenditures at casinos.

Or living the high life of Saudi Royals.
They're such a rowdy clan!

[delrem]

2. Nor their expenditures as proxies for wars.