Saudi Arabia is boosting its projected budgetary expenditure by just 4pc this year, stabilising its revenue requirements while its crude production faces potential pressure from rising Opec and non-Opec output. Riyadh has boosted its 2014 budget to 855bn riyals ($228bn), up from last year’s budgeted expenditure of SR820bn. The increase is the lowest in projected budgetary spending since 2002, and is in marked contrast to the 19pc growth in projected spending in last year’s budget. The government projects a balanced budget for the first time since 2005, with spending equal to revenues. Oil contributes around 90pc of state revenues, but the finance ministry has not disclosed the oil price and export figures upon which the budget is based. Riyadh-based Jadwa Investment estimates that the budget is based on a price of $67/bl for Saudi export crude — equivalent to $71/ bl for Brent — output of 9.4mn b/d and domestic demand of 2mn b/d. Saudi Arabia produced 9.6mn b/d last year.
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