Saudi Arabia Achieves Budget Surplus of $4.27 Billion in 2023

In an unexpected financial development, Saudi Arabia reports a budget surplus of 16 billion riyals ($4.27 billion), a significant turn from the 82 billion riyals deficit previously projected by the government. This information, based on preliminary data, was announced by the Saudi investment ministry.

Budget Projections Upended

Initially, predictions for 2023 anticipated a budget deficit in Saudi Arabia, largely due to expected lower crude oil production and price drops impacting the nation's revenue streams. However, the reality has shifted dramatically in Saudi Arabia's favor.

From Deficit to Surplus

In a remarkable fiscal turnaround, what was once a 35.8 billion riyals ($9.54 billion) deficit in the third quarter transformed into a 60 billion riyals ($16 billion) surplus by the fourth quarter of 2023.

Expenditure Decrease as a Potential Factor

The investment ministry suggested that the surprising surplus might stem from a decrease in government spending, which dropped by 40.7%. This substantial reduction in expenditure could be a primary contributor to the financial outcome.

Revenue Streams

Despite Saudi Arabia continuing voluntary cuts in oil production by 1 million barrels per day for much of the year, total revenues were still anticipated to be at 1.193 trillion riyals in the latest forecast from December.

SaudiArabia, Budget, Surplus