JEDDAH, 3 January — Saudi government expenditure in the current year was SR225 billion, according to the Ministry of Finance, not SR222.2 billion as reported last week by SPA. Likewise, actual income was SR204 billion, not SR214 billion as reported. This made for actual deficit of SR21 billion rather than the reported SR8 billion.
The actual figures are still significantly different from those projected in the 2002 budget, announced a year ago. Expenditure had been set at SR202 billion, income at SR157 billion, and a deficit at SR45 billion. The reason for the heady 30 percent rise in income and consequently the deficit being more than halved was the surge in oil prices; the average Saudi oil price throughout 2002 was $23.50 a barrel, not the $17 expected when the budget was set.
This surge in turn eased spending restrictions on the government. Expenditure was 11.4 percent over budget, not 10 percent as reported, but a marked improvement over the 18.6 percent overspend of 2001.
The budget for the fiscal year 2003 (Dec. 31, 2002 — Dec. 30, 2003) was endorsed at a meeting of the Council of Ministers on Nov. 27. Expenditure is set at SR209 billion, a 7 percent decrease on actual income in 2002 but a 3.5 percent increase over the 2002 budget. Income is set at SR170 billion, 16.7 percent less than what was actually earned in 2002, but an increase of 8.3 percent on the budgeted estimate.
The 2003 budgeted deficit is SR39 billion, an 86 percent increase on the actual figure for 2002 but nonetheless 13 percent less than what was budgeted.
