Saudi Arabia is getting ready to reduce the costs and issue additional bonds, because of the budget deficit caused by growth of oil prices, reported AFP.
As soon as oil price went down below $50.00 per barrel, Saudi Arabia has faced the budget deficit and the country will need additional instruments to liquidate it. According to the official statistics, in 2015 the budget deficit will total $39 billion. However, the International Monetary Fund (IMF) claims this figure will total at least $130 billion.
Saudi Minister of Finance Ibrahim Al Assaf said that budgetary costs will be reduced to minimum in fields of education, health and infrastructure projects. In July the authorities withdrew $82 billion from the Reserve Fund and reduced it to $650 billion and until the end of the year the Fund is expected to have $629 billion left. The state has already issues bonds to the amount of $27 billion to cover the deficit.
* In June 2015 Saudi Arabia extracted 10.6 million barrels a day, while in July -10.4 million barrels a day.
