Saudi plans spending cuts, revenue push to shrink 2016 budget deficit

Riyadh

SAUDI Arabia, its finances hit by low oil prices, announced plans to shrink a record state budget deficit with spending cuts and a drive to raise revenues from sources other than oil.

The government of the world's top oil exporter ran a deficit of 367 billion riyals (S$137.8 billion) in 2015, the Council of Economic and Development Affairs said on Monday. Its 2016 budget plan aims to cut that to 326 billion riyals, reducing pressure on Riyadh to pay its bills by liquidating assets held abroad.