With Saudi Arabia forecast to have a deficit of SR66 billion in the 2015 budget because of falling oil prices, the government faces four choices to make up for the shortfall and keep its spending at current levels, say analysts.

This includes cutting foreign aid, delaying some domestic projects, dipping into its substantial reserves or borrowing from local banks. The deficit forecast is based on oil prices of $75 a barrel, about 25 percent less than the expected price of $100 per barrel.

According to analysts, the total budget revenues in 2015 is expected to be about SR933 billion, compared to spending of about SR999 billion, which creates the projected deficit of SR66 billion.

Government spending during 2015 is expected to fall by 5 percent compared to 2014. This year’s spending is likely to be over SR1.05 trillion, according to reports.

The Saudi government could dip into its general reserve, which currently exceeds SR904 billion. It could also postpone a few projects not related to vital sectors such as health, education or infrastructure.

The third option entails reducing the massive amount of foreign aid provided to Arab and Muslim countries, although a significant reduction is unlikely because of the Kingdom’s stated commitments. Over the past 24 years, Saudi foreign aid was about SR252 billion.

The government may resort to a fourth option, which involves borrowing from Saudi banks. This is likely to boost the banking sector, which might benefit other sectors of the economy.

By the end of 2013, the Kingdom had been able to reduce its debts significantly to SR75 billion, or about 2.7 percent of Gross Domestic Product. Over the last 10 years, the country has also paid back SR585 billion in debt.

The price of oil declined on Wednesday, reaching its lowest level since 2009. Ratings agency Morgan Stanley cut its forecast of the price of crude in the aftermath of the decision by the Organization of the Petroleum Exporting Countries to keep output unchanged during its last meeting. Forecasts indicate that Saudi oil exports would hover in the region of 7.63 million barrels per day.

The Kingdom’s oil revenues are expected to be about SR783 billion in 2015, which is equivalent to 84 percent of total revenues, while nonoil revenues will amount to SR150 billion, or 16 percent.

Nonoil revenue growth is estimated at 15 percent during 2015, based on the average growth rate in recent years, analysts say.