RIYADH, Mar 21 (NNN-SPA) – Saudi Arabia predicted that the deficit of the 2020 state budget will range between seven and nine percent, amid the COVID-19 outbreak.
At a press conference, Saudi Finance Minister, Mohammed al-Jadaan, stressed the country’s financial and economic capability, to deal with the virus crisis with flexibility, by means of reducing expenditures or borrowing, according to the report.
Some of the state’s budget appropriations will be reviewed and reallocated to the sectors most in need, in the current situation, including the health sector, said al-Jadaan.
Besides, an emergency budget was introduced to cover any costs that may arise during the development of this global crisis, the minister added.
The recent decision to reduce expenditures by 50 billion Saudi Riyals (about 13.3 billion U.S. dollars) will cover unnecessary services in various sectors, including entertainment and sports, al-Jadaan noted, while assuring the reduction won’t affect the ability to pay contractors and suppliers.
The minister also revealed that the expectations indicate that the debt won’t exceed 100 billion riyals this year.
Al-Jadaan said, to assist the private sector to deal with the implications of the precautionary measures against the virus, the government allocates 70 billion riyals for initiatives related to exemptions and postponement of some government dues, to provide liquidity to businesses.
On Friday, Saudi Health Ministry announced 70 new COVID-19 cases, bringing the total confirmed cases to 344.
