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And Saudi Arabia unveils the biggest budget deficit in its history

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A sharp fall in oil price has forced Saudi Arabia’s government to deliver the largest budget deficit in its history.

Image via naiffoods.com
Image via naiffoods.com

In the wake of declining oil prices and a war with Yemen which increase the government spending, the country’s deficit rose to 367bn riyals (£66bn). The total deficit stood at 16pc of the economy’s size. Stock markets reacted positively to the government’s spending plans, and investors are feared.

Saudi oil filed, image via twitter
Saudi oil filed, image via twitter

The Saudi government has planned to narrow the deficit to 327bn riyals in 2016, by cutting back spending from 975bn riyals to 840bn riyals.