Saudi oil released 2015 budget implied return $ 80

Published: 9:00:50 2014/12/26 9:00:50  Views: 396

Saudi Arabia is expected that in 2015 the budget deficit will widen to 145 billion riyals (about $ 39 billion).



Former chief economic adviser to the Saudi Ministry of Finance, told Bloomberg John Sfakianakis, Saudi 2015 budget is based on oil prices may be about $ 80 / barrel making, this would be considered a sign that they have confidence in the crude oil market.



Sfakianakis Thursday told Bloomberg on the phone:



Everyone expected the budget will be based on the price of oil was $ 60 / barrel making, this market will deliver a negative message. However, if the fiscal balance in oil prices of $ 80 / barrel, Saudi passing out information to the market is expected to rebound in oil prices.



A statement of the Saudi Ministry of Finance show that revenue will decline this year, next year's 1.046 trillion riyals to 715 billion riyals, while expenditure set at 860 billion riyals, 2014 expenditure is estimated to be 1.1 trillion in Yar, higher than the budget enacted last year by 29%, oil revenues accounted for nearly 89% of revenue in 2014, this year's budget deficit is expected to reach 54 billion riyals(http://www.fireinews.com/).



Saudi Ministry of Finance said the 2015 budget was 'in a challenging international economic and financial conditions' to develop, although the government will continue to invest in areas such as education and health care, but would 'restrict spending in other areas, especially wages' This part of the expenses accounted for nearly half of the budget expenditure.



Nine-year reign, Saudi King Abdullah to a record high of money into the roads, the construction of the industrial center and the airport, hoping to reduce dependence on Saudi oil, while reducing the unemployment rate up to 12% since the end of 2011 since, Saudi Arabia's fiscal expenditures are made in the average price of $ 107 / barrel oil price driven. Now, however, crude oil prices equivalent to half that time, the lowest level since 2009.



In addition, knowledge of Wall Street site introduced, Saudi Oil Minister Ali Al-Naim, headquartered in London on Monday to accept Al-Hayat, Saudi Arabia (Al-Hayat) said in an interview, crude oil may not return to $ 100 / barrel up.



He also said Gulf producers can withstand low oil prices in 2-3 years, if Saudi Arabia deficit, borrowing from banks, Saudi Arabia would have no debt, so as to maintain the existing reserves.









Article Keywords: Saudi crude oil dollar






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