Saudi Arabia's Budget Deficit Grows Amid Economic Overhaul

Saudi Arabia registered a budget deficit of 30 billion riyals in the third quarter of 2023, largely influenced by reduced oil prices and increased government expenditure. The kingdom is actively pursuing its Vision 2030 plan, emphasizing infrastructural investments and diversification to reduce oil dependency.

Saudi Arabia faces a growing budget deficit, recording 30 billion riyals in the third quarter, driven by falling oil prices and increased spending. The country's deficit for the first nine months reached 58 billion riyals, according to finance ministry data.

The government is investing heavily under the Vision 2030 plan, boosting capital expenditures by 33% in a bid to diversify the economy away from its oil dependency. Key areas of investment include infrastructure, tourism, and sports.

Despite a dip in quarterly profits, state oil giant Aramco committed to maintaining its $31.1 billion quarterly dividend, a crucial support for the kingdom's finances. Future economic growth is expected as oil prices rise and voluntary cuts are reduced.

(With inputs from agencies.)