Riyadh – Mubasher: Saudi Arabia’s fiscal deficit could register around SAR 362 billion by the end of 2020, equivalent to 13.5% of the gross domestic product (GDP), according to Jadwa Investment
In the second quarter (Q2) of the year, the kingdom’s fiscal deficit amounted to SAR 109 billion, bringing the deficit of the first half (H1) to SAR 143 billion.
Jadwa further projected oil prices to trade between $40 and $45 per barrel (pb) in H2 of the year, with a potential for government oil revenue to exceed current forecast of SAR 350 billion for the full year in case of continued dividend payments from Saudi Aramco.
In Q2-20, government oil revenue registered SAR 96 billion, down 45% year-on-year (YoY), whist oil prices shrank by 60%.
Non-oil revenue is predicted to continue showing yearly declines, but a higher rate of the value-added tax (VAT) in H2 will help mitigate losses, after declining by 55% in Q2.
The Saudi government revenue totalled SAR 134 billion in Q2, down 49% YoY.