Saudi Arabia plans to spend $261 billion in 2018. The budget will set a record for Saudi Arabia, as it looks to reform the country’s economy and reduce reliance on oil revenues. Forbes reported that Saudi Arabia plans to cut gasoline subsidies, creating a 80% price jump in January 2018. The article notes that gasoline prices were very low – a measly $10 could fill up a full tank. Even with a 80% increase, a full tank of gas would still cost less than $20.

In 2018, the country plans to introduce value added taxes and excise taxes on tobacco and soft drinks, CNBC reported. Additionally, levies will be placed on expatriates. These new taxes are expected to create non-oil revenues. The reduction of government-sponsored welfare programs will also play a large role, seeing as how government expenditures took up 40.8% of the country’s GDP in 2014. CNBC also reported that Saudi Arabia is seeking to reduce the 12.8% of people without jobs.

Bloomberg analyzed the 2018 budget – a partial list is included below:

  • 2018 Revenue
    • Oil revenue to rise to 492 billion riyals, compared with 440 billion riyals in 2017
    • Non-oil revenue seen at 291 billion riyals, up from 256 billion riyals in 2017
    • Value added tax is expected to generate 23 billion riyals
    • Expatriate tax to generate 28 billion riyals
    • Total revenue to rise 12.6% to 783 billion riyals
  • 2018 Spending
    • Spending to grow to 978 billion riyals, the total is 1.1 trillion riyals when including 83 billion riyals from sovereign wealth fund and 50 billion riyals from national development funds
    • Capital spending to increase by 13.6% to 205 billion riyals
    • In 2017, spending rose 11.5% to 926 billion riyals
  • 2018 Funding
    • 50% from oil revenue
    • 30% from non-oil revenue
    • 12% from debt
    • 8% from government balances

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