RIYADH: Saudi Arabia has released a state budget that projects a modest 4.3 percent rise in spending next year, suggesting the Kingdom is starting to slow expenditure growth after three years of huge increases.
Spending and revenue are both projected to total SR855 billion riyals ($228 billion) next year. That compares with outlay of SR820 billion and revenue of SR829 billion in the original budget for 2013.
Actual expenditure and revenue in the Kingdom often turn out to be much larger than its projections, allowing Saudi Arabia to post big budget surpluses, as oil prices generally come in higher than its conservative assumptions.
Nevertheless, the 2014 budget suggests Riyadh is starting to rein in fiscal policy after massive expansion.
Next year's 4.3 percent rise in planned spending is far smaller than the 19 percent leap envisaged by the 2013 budget plan.
The finance ministry predicted that gross domestic product will grow only 3.8 percent this year, down from 5.8 percent in 2012.
Analysts estimate it has assumed oil prices close to $70 a barrel in recent years.
Brent crude oil is now trading at $111, suggesting the Saudi budget may again be comfortably in surplus next year.
