JEDDAH: Some experts are predicting that there will be a surplus of about SR200 billion in this year's budget – which is the difference between income and expenditure. However, some specialist bodies, including banks, have forecast there would be a deficit of about SR41 billion. The Ministry of Finance has predicted it would be in the region of SR70 billion. This year's surplus makes it probable that expected oil revenue will not be less than SR738 billion, in addition to non-oil revenue of not less than SR65 billion. Relevant authorities have also finalized the state's budget for the fiscal year 2011. A large portion of the budget has been allocated for housing. Available information shows that the government is attempting to reduce gross debt in the new budget to curb inflation. Gross debt levels remain at SR225 billion, which is equal to 16 percent of Gross Domestic Product (GDP), compared to 13 percent last year. However, gross debt is not a priority because it is not close to 60 percent of GDP, which is considered a critical level. Expenditure in the 2011 budget will surpass the actual expenditure in the 2010 budget. Revenue will be about SR790 billion while expenditure will range between SR586 billion and SR600 billion.
