Saudi Arabia reported a budget surplus of 77.9 billion riyals ($20.7 billion) in the second quarter, driven by a surge in global oil prices.
Total government revenue stood at 370.4 billion riyals, more than 33 per cent higher than the previous quarter, while spending rose to 292.5 billion riyals in the quarter, according to a statement by the kingdom’s finance ministry on Thursday.
Oil prices which have averaged above $100 per barrel this year. The Organisation of Petroleum Exporting Countries, of which the kingdom is a part, agreed to increase daily oil production slightly but Saudi Arabia anticipates the market will stay tight.
Saudi officials previously said they will stick with spending plans for 2022 outlined in December’s budget announcement, using higher oil revenues for replenishing its reserves or transferring to one of its investment funds.
Oil markets are pulling Saudi Arabia’s fortunes up again after it was hit hard by plummeting crude prices during the pandemic in 2020. The International Monetary Fund expects Saudi Arabia’s fiscal balance to achieve a surplus higher than 5 per cent of gross domestic product this year.