Saudi Arabia plans to draw on its reserves in posting a record deficit in 2015. Spending will be cut but by much less than revenue leading to a resulting deficit of SR145bn ($38.7bn), according to the 2015 budget, unveiled by the Saudi cabinet on 25 December.

The 2015 budget projects revenue at SR715bn ($190.7bn), with spending of SR860bn ($229.3bn) planned. The former is down by 33% in real terms on the latest official estimate of actual 2014 revenue, while the latter represents a 24% real terms cut: the bulk of the axe will fall on capital projects where spending will be almost halved to SR185bn ($49.3bn); current spending will be cut by 12% in real terms. (CONTINUED - 1421 WORDS)