Saudi Arabia’s efforts to ease the burden on ordinary citizens from its promised economic overhaul are taking a toll on its balance sheet. Photo: FAYEZ NURELDINE/AFP/Getty Images
Saudi Arabia’s efforts to ease the burden on ordinary citizens from its promised economic overhaul are taking a toll on its balance sheet.
The increase in the kingdom’s spending on wages and social benefits during the first quarter exceeded what it accrued through higher taxes and lower subsidies, driving the deficit higher to 34.3 billion riyals ($9.2 billion), from 26.2 billion riyals a year ago, according to a quarterly Finance Ministry report.
Officials are trying to ease the economy’s addiction to oil exports by finding alternate revenue sources, while shrinking the deficit by reshaping one of the world’s most generous welfare schemes.
The plan is part of Crown Prince Mohammed Bin Salman’s blueprint to prepare his country for a post-oil era, which also includes selling stakes in state-owned companies, including up to 5 percent of oil giant Aramco.
