Cheap oil has led to record fiscal deficits in Saudi Arabia

Moscow. December 29. One of the reasons record for all history of existence of the budget deficit in Saudi Arabia are low world oil prices, recognized the Saudi Ministry of Finance.

In a statement the report said that in 2015 the budget deficit reached $98 billion, and in 2016 could be $87 billion.

The budget in 2015 “faced with the challenges of global and regional economic and financial conditions, including very low oil prices”, – stated in the message of the Ministry.

Budget revenues this year by 15% below expectations, fell by 42% compared with 2014, said the Agency.

It is informed that in order to stabilize the budget will be a series of unpopular measures among the population, in particular, the five-year waiver of subsidies for electricity and fuel.

The official Saudi news Agency SPA also reported on the upcoming price increase on gasoline and diesel fuel at approximately 50%.

In addition, observers note that Riyadh bears a large financial burden and increases expenses on military operation against rebel Houthis in Yemen.