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Blanchard

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


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