RIYADH (Reuters) -Saudi Arabia approved a 1.114 trillion-riyal ($296 billion) budget for 2023 on Wednesday, forecasting a surplus at 0.4% of gross domestic product (GDP), down from 2.6% in 2022, Saudi media reported.
Revenues are expected to reach 1.13 trillion riyals, down from 1.234 trillion riyals in 2022 as oil prices are likely to drop from this year’s levels.
The kingdom is expected to post a budget surplus of 102 billion riyals ($27.13 billion) in 2022.
Total spending is seen at 1.114 trillion riyals in 2023, slightly lower than 1.132 trillion riyals this year.
GDP growth is forecast to slow to 3.1% in 2023 from 8.5% this year, an upwards revision of half a percentage point from a preliminary budget forecast. Public debt is forecast to fall 3.5% to 951 billion riyals next year, Al Arabiya said.
High oil prices have helped Saudi Arabia’s fiscal balance to tilt to a surplus this year. This however is smaller than the 5.5% the International Monetary Fund (IMF) forecast in a report in August.
The kingdom does not disclose the oil price it bases its budget on. The IMF estimates the kingdom’s fiscal breakeven oil price at $73.3 this year and $66.8 a barrel next year.
($1 = 3.7600 riyals)
(Reporting by Aziz El Yaakoubi, Rachna Uppal, Nadine Awadalla, Alaa Swilam and Yousef Saba; Editing by Toby Chopra, William Maclean)
