Saudi revenue seen at $295b a year till 2016

RIYADH – Saudi Arabia will collect $295 billion a year in government revenue from 2012 to 2016 amid high oil prices, Samba Financial Group (SAMBA) said.

Hydrocarbon earnings are expected to be $265 billion a year in the same period, the bank said. Real gross domestic product growth will average 5 percent for the period, while inflation will be stable at an average of 5.5 percent, it said.

"Under our oil price and production assumptions we expect that the government will have plenty of money to spend during the forecast period," the bank said. "Government spending will remain the engine of economic growth."

The government spent SR804 billion ($214 billion) and collected SR1.11 trillion of revenue, according to the Ministry of Finance.

Economy Minister Muhammad Al-Jasser said in May he hoped the Kingdom’s real gross domestic product growth will be at about 6 percent this year.
The International Monetary Fund forecast in April that economic growth will slow to 6 percent from 6.8 percent last year. – SG/Agencies