Experts ruled out decreasing public spending in the Kingdom’s budget which is likely to be released over the next days. They ascribed this to a package of development and expansion projects in all field sectors, OKAZ daily reported.
They added that the oil prices will weigh on FY2015 budget if they remain at current low levels. Thus, the Kingdom may resort to coverage options including sovereign funds and bonds.
Dr. Habibullah Turkistani, professor of economy at King Abdulaziz University, said the public expenditures are likely to range between SAR 800 billion to 900 billion to cover future commitments including projects. He added that sovereign funds and cash reserves will be used when necessary.
Turkistani indicated that oil prices fluctuated in the fourth quarter, which led to a decline in revenues below FY2014 expectations.
“So we hope FY2015 budget assumes no consequences, and things keep moving in the same scheduled direction,” he noted.
Dr. Salem Bajajah, professor of accounting at the Administrative Sciences College, said FY2015 was prepared amid tough economic conditions reflecting the Kingdom’s ability to deal with oil price issue, so the government may use surpluses of last years to cover any potential deficit.
Photo Credit: Arabianeye-Reuters
They added that the oil prices will weigh on FY2015 budget if they remain at current low levels. Thus, the Kingdom may resort to coverage options including sovereign funds and bonds.
Dr. Habibullah Turkistani, professor of economy at King Abdulaziz University, said the public expenditures are likely to range between SAR 800 billion to 900 billion to cover future commitments including projects. He added that sovereign funds and cash reserves will be used when necessary.
Turkistani indicated that oil prices fluctuated in the fourth quarter, which led to a decline in revenues below FY2014 expectations.
“So we hope FY2015 budget assumes no consequences, and things keep moving in the same scheduled direction,” he noted.
Dr. Salem Bajajah, professor of accounting at the Administrative Sciences College, said FY2015 was prepared amid tough economic conditions reflecting the Kingdom’s ability to deal with oil price issue, so the government may use surpluses of last years to cover any potential deficit.
Photo Credit: Arabianeye-Reuters
Source:
Mubasher
