Saudi budget deficit narrows thanks to oil, tax revenue boosts

Saudi Arabia saw its oil revenue rise 38 percent in the second quarter of 2021 compared to the same period last year.

Saudi Arabia’s budget deficit narrowed to 4.6 billion riyals ($1.2 billion) in the second quarter, boosted by higher oil prices and surge in tax revenue. The world’s largest crude exporter saw oil revenue rise 38% in the period from April to June compared to the same period last year, while non-oil revenue tripled, reaching 116 billion riyals, according to a finance ministry statement. That was largely driven by increased tax revenue after the government tripled value-added tax to 15% last July – and the comparison with a low base during last year’s lock-down. Spending remained restrained, at around 253 billion riyals.