RIYADH: The announcement of the 2016 budget on Monday is as per the expectations of financial analysts.

“Saudi Arabia has seen similar situations before during the Gulf war but its economy remained strong and steadfast and will continue to remain so,” one of them said.

On Monday, the Council of Ministers under the chairmanship of Custodian of the Two Holy Mosques King Salman approved the state budget for the new fiscal 2016, with revenues amounting to SR514 billion and expenditures SR 840 billion. In his short speech addressing the citizens, King Salman said the state budget this year comes in light of the oil price decrease, and the regional and international economic and financial challenges.

He, however, confirmed that the county’s economy has its strengths and potentials to meet the challenges. "The budget represents the beginning of an integrated program of work to build a strong economy," he observed.

This year’s budget features the following: Public revenues SR514 billion and expenditures SR840 billion; deficits are estimated at SR326 billion.

The council said the financial results for the current 2015 budget year were SR608 billion revenues, SR974 billion expenditures and deficits expected to reach SR367 billion.

Despite the 50 percent decline in oil prices, the year’s budget reflected positively on the GDP and the domestic economic growth continued for the seventh year in a row with increasing economic durability, strength and diversity.

Based on official data analysis published by the concerned authorities, the Kingdom’s 2016 budget is expected to witness a change in government spending, especially on expansions, but at a slower pace than in the previous years.

Most of the major sectors, including transport and basic equipment, will see growth because of infrastructure expansions taking place in all cities of the Kingdom, thus contributing to GDP.

Public transport projects are also growing in all cities, as also expansions taking place in the main and regional airports as well as the establishment of new airports.

There will be a marginal growth in the health sector, where there will be an allocation for the establishment of new hospitals, in addition to the expansion of primary health centers of the Ministry of Health, as well as the renovation and updating of existing hospitals with the latest devices and digital technologies in keeping with the health strategy pursued by the Kingdom. A source said that the education sector will most likely see a small growth as it jumped allocations in the past.