RIYADH Dec 26 (Reuters) – Saudi Arabias Finance Ministry
will talk about with the central bank its choices for financing the
big state spending plan deficit expected next year, and might cover
some of the shortfall with loaning, Finance Minister Ibrahim
RespondingReacting to the plunge of oil rates, the ministry
revealed on Thursday a 2015 budget plan which imagines a.
deficit of 145 billion riyals ($38.7 billion).
A ministry statement stated the government could cover the.
deficit with its big financial reserves, but Alassaf told Al
. Arabiya television late on Thursday that borrowing might also be.
used.There is likewise a chance to obtain at good rates – this topic.
will be talked about with coworkers at the Saudi Arabian Monetary.
Firm at the proper time, he said.Alassaf did not elaborate on the types of loaning which. may be utilized.
Although Saudi state-run firms and state-owned.
firms have actually sometimes issued foreign- and local-currency bonds.
in currentin recent times, the government itself has not, liking to.
pay down its debt.The minister kept in mind that Saudi Arabias public financial obligation had. dropped to 44 billion riyals or about 1.6 percent of gross. domestic item, which would make it simple to obtain. Both. state-run and private monetary
organizations have big resources. from which the government might borrow, he added.Alassaf stated next years budget deficit would be a little. more than 4 percent of GDP, which he called low under current.
international conditions. Saudi Arabia did not expose the oil cost.
assumed in its 2015 spending plan, but experts approximate it had to do with.
$55 a barrel or a little greater; Brent unrefined oil is now at$60. In past spending plans, the government made very conservative.
assumptions for oil incomes, leading to much.
higher-than-projected earnings at the end of each year
. That is. not likely to occuroccur with the 2015 budget, Alassaf said.We were realistic in our quotes for next years revenues.
due to current and expected developments in the oil market.
Possibly over the past years I concur we were conservative, however this.
year we were reasonable, he said.The ministry said on Thursday that Saudi Arabias. inflation-adjusted GDP grew an estimated 3.6 percent this year,. up from 2.7 percent in 2013. Alassaf stated those calculations. utilized the base year of
2010, when the oil sectors contribution. to the economy was uncommonly
high.If the calculations had actually used 1999 for the base year, as the. government did previously, growth in 2014 would have come in at. 4.1 percent, Alassaf said.He called that rate healthy and said it was expected to be. kept next year.
PersonalEconomic sector growth was estimated at 5.7. percent this year, showing the governments
efforts to diversify. the economy beyond oil are on track, he added.(Reporting by Marwa Rashad; Composing by Andrew Torchia)