Saudi budget sees first quarterly surplus since 2019 on high oil

Saudi Arabia recorded its first quarterly budget surplus in more than two years as higher crude prices boosted the kingdom’s finances.

The Gulf nation’s surplus during the third quarter was about SAR6.7bn ($1.8bn), trimming the year-to-date deficit to SAR5.4bn, according to a report published by the Ministry of Finance on Sunday.

Oil revenue was about SAR148bn, an increase of 60 per cent from the same period last year, while non-oil income decreased 22 per cent on an annual basis to SAR95bn.

* Oil revenue so far this year is up 25 per cent compared to a year ago
* Non-oil revenue year-to-date has risen 33 per cent compared to 2020. The kingdom tripled its value-added tax in July 2020
* Third-quarter government wages increased 3 per cent on an annual basis, while subsidies fell 47 per cent

Officials expect next year’s budget shortfall to shrink to 1.6 per cent of gross domestic product, as the kingdom raises its revenue expectations on higher oil prices and production.

A revenue crunch during the pandemic pushed Saudi Arabia to increase value-added tax and trim public sector pay, drawing complaints from citizens.