Business | Economy
Saudi Arabia expects budget surplus to double in 2005
Ministry projects budget surples at 214 billion riyals ($57.1 billion) and expects GDP growth to reach 22.7% at current prices.
- Reuters
- Published: 00:00 December 13, 2005
Riyadh: Saudi Arabia, the world's biggest oil exporter, said on Monday its 2005 budget surplus is projected to more than double to 214 billion riyals ($57.1 billion) but a smaller surplus is expected next year.
A statement published on the website of the Finance Ministry (www.mof.gov.sa) said the surplus would be used to pay down public debt, invest in infrastructure projects and pump money into development.
The 2004 surplus was recently revised upwards by the central bank to 107 billion riyals from 98 billion previously. The Finance ministry said it would shrink next year to 55 billion riyals.
With oil prices hitting record highs this year, the ministry said 2005 gross domestic product growth would reach 6.54 per cent in constant prices and 22.7 per cent at current prices.
It also said public debt is expected to fall by the end of this year to 475 billion riyals, or 41 per cent of GDP in current prices. At the end of 2004 Saudi Arabia estimated public debt at 614 billion riyals.
Inflation, measured by the government's cost of living index, is estimated at 0.4 per cent in 2005. The non-oil GDP deflator, seen by economists as a more accurate reflection of inflation, grew 1.14 per cent.
"The realised budget surplus will be utilised ... to retire part of the stock of public debt, implement a special programme of infrastructure projects, and replenish the resources of development funds," the ministry said.
It said the government would allocate 87.3 billion riyals for education and manpower development in 2006, 31 billion riyals for health and social affairs and 22.5 billion riyals for water, agriculture and infrastructure.
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