Government spending in Saudi Arabia from 2010 to 2018

The statistic shows the government spending in Saudi Arabia from 2010 to 2018. In 2018, Saudi Arabia's government planned spending amounted to 275 billion U.S. dollars.

Saudi Arabian government spending

While Saudi Arabia has existed comfortably on a cushion of oil exports, things have been growing dire recently for the country's economy. Before 2014, the Saudi Arabian government significantly and rapidly increased government spending from 167 billion U.S. dollars in 2010 to 293 billion U.S. dollars. But as crude oil prices dropped drastically between 2014 and 2015, and are remaining low in 2016, Saudi Arabia has been forced to decrease its spending in order to manage a future where steeply increasing national debt is projected. This debt increase is the result of a negative budget balance which has been caused by a decrease in oil and gas prices around the world. Saudi Arabia has chosen to take austerity measures in order to resolve this problem.

These measures, however, will pobably continue to slow economic growth even more so than it is now. But while these spending cuts may not do much to boost the economy, they may be the only option Saudi Arabia has before oil and gas prices rise again. So far, oil and gas prices are expected to remain low, so no immediate relief can be expected, and increasingoil production is unlikely to help either. Saudi Arabia will most likely also attempt to diversify its economy in addition to cutting spending.