Saudis finally balance budget thanks to oil price bonanza
Special to World Tribune.com
MIDDLE EAST NEWSLINE
Wednesday, December 20, 2000
NICOSIA — After 15 years of deficits, Saudi Arabia has used its
soaring oil revenues to balance the kingdom's budget.
Saudi officials said Riyad has drafted a $57.3 billion budget for fiscal
2001. The budget was presented by Saudi King Fahd and comes amid economic
growth of 15 percent during this year.
"This growth is due to the spectacular rise in crude prices and
increased oil production," a Saudi Finance Ministry statement said on
Tuesday. "Thanks to the price rises, the Saudi oil sector should attain
growth of 39.4 percent in 2000."
For its 2000 budget, based on an oil price of $19 a barrel, Riyad had
forecast a $7.4 billion deficit. Instead, the price of oil hovered around
$35 for much of the year.
Officials said the priority in the budget will be development projects
and social programs. The ministry said the 2001 budget allocates $10.1
billion to reduce unemployment and $14.2 billion for educational and
vocational training programs.
Saudi Arabia is the world's leading oil exporter and obtained revenues
of $164.8 billion in 2000.
The Finance Ministry forecasts a surplus of $14.8 billion in the balance
of payments in 2000. The ministry cited rising oil revenues as prices have
tripled over the last 18 months.
Wednesday, December 20, 2000
|