Finance Minister Ibrahim Al-Assaf

JEDDAH: Saudi Arabia plans to raise government spending by 0.6 percent to a record high next year while covering a large budget deficit due to plunging oil prices with its huge fiscal reserves, the Ministry of Finance said.

Spending in the kingdom’s 2015 state budget is projected at SR860 billion ($229 billion), up from SR855 in the 2014 budget plan — the smallest increase in more than a decade.

Projected 2015 revenues would drop to SR715 billion from SR855 billion in the 2014 plan, leaving a deficit of SR145 billion.

Saudi Arabia will continue spending actively on economic development projects, social welfare and security despite the oil price slide and challenging conditions in the global economy, the ministry said.

[wpResize]