Saudi Arabia's public spending is expected to increase by SR8 billion annually during the next five years, an economic report by the National Commercial Bank said. The report observed tremendous progress in the country's economic situation this year on the back of skyrocketing oil prices. Crude prices, hovering around $50 a barrel at present, had reached an average of $34.5 per barrel over the past six months. Average Saudi oil export prices would touch $33 per barrel during 2004, registering a 22.2 percent rise compared to prices in 2003, the report pointed out. The current oil prices are $14 higher than the prices estimated for the 2004 fiscal budget. "An addition of every dollar to oil prices will help the Kingdom earn $2.5 billion annually," the NCB report said. In addition to rise in oil prices, the Kingdom's oil revenues were poised to rise this year as a result of increase in production by one million barrel daily above its OPEC quota. Oil revenues account for three fourth of Saudi Arabia's total revenues and this revenue will continue to increase in the remaining period of the year. The bank predicted that total government spending this year would reach SR265 billion. --MORE 1144 Local Time 0844 GMT
