Faisal Al Nasser | Reuters
A man holds a nozzle at a petrol station in Riyadh, Saudi Arabia October 8, 2017.
According to analysts, a key feature of the budget was the explicit focus on structural reforms accompanying the increased spending.
“The key can be to look at what they’re spending the money on as well as how effectively they spend This particular,” Khatija Haque, head of Middle East as well as North Africa research at U.A.E-based bank Emirates NBD, told CNBC on Wednesday.
The government intends to cut energy subsidies next year, with the move widely anticipated to free up funds for different parts of the economy such as infrastructure.
“This particular’s genuinely right now about the effectiveness of spending rather than just throwing money at the problem as well as having This particular disappear into private hands without actually delivering what was promised — in which’s a process in which needs to change,” Haque said.
The introduction of a value added tax next year in addition to completely new excise taxes on tobacco as well as soda pops, as well as recent levies on expatriates are widely anticipated to strengthen non-oil revenues next year. Riyadh forecasts non-oil income at 291 billion riyals in 2018, up via 256 billion riyals This particular year.