Riyadh: Top oil exporter Saudi Arabia plans to cut public debt further in 2011 after slashing it by 58 billion riyals (Dh57 billion) this year, its finance minister said yesterday.
The biggest Arab economy, where high oil prices helped insulate it from the worst of the global financial turmoil, cut public debt to 167 billion riyals this year from 225 billion riyals at the end of 2009.
There would a further drop in public debt, Finance Minister Ebrahim Al Assaf told Dubai-based Al Arabiya television.
On Monday, Saudi Arabia said it planned to spend 580 billion riyals in 2011 mainly on education and infrastructure to help spur its economy. Saudi saw growth in real terms of 3.8 per cent in 2010.
The kingdom forecast a deficit of 40 billion riyals for 2011 though it usually ends up with a surplus as it calculates the budget with a very conservative oil price.
Circumstances
Al Assaf said it was too early to say whether the kingdom would overspend again as it did in 2010 and in previous years.
"It will depend on the circumstances," he said without being more specific. He gave no oil price forecast for the budget.
Al Assaf said a pick-up in infrastructure projects contributed to the overspending by 86.5 billion riyals in 2010.
