Based on modest demand and pricing estimates for oil, the Saudi government expects revenues to reach USD 125.3 billion in 2010, while expenditures are foreseen to total approximately USD 144 billion, thus resulting in a projected deficit of USD 18.7 billion.
The new budget indicates an increase of 14% from the USD 126.6 billion allocated in public spending in 2009 and equals almost 3 times the public spending allocation in the 2005 budget.
Significantly, the new budget includes an unprecedented USD 69.3 billion for new and existing infrastructure projects in power generation, construction and transportation, representing 16% increase from 2009.
The emphasis on development projects is designed to increase employment across all economic sectors, while at the same time continuing major campaigns to overhaul much of the country’s infrastructure systems. The 2010 budget will mark USD 9.3 billion increase in projected capital expenditure compared to 2009.