Saudi Arabia raised domestic energy prices by a whopping 40% after it posted a record $98 billion budget deficit in 2015 because of the sharp fall in oil earnings. The country's finance ministry on Monday said the deficit is "considered an acceptable figure" under the current circumstances, with oil prices languishing at multi-year lows, reported Reuters.
AFP reported that Saudi Arabia's revenues were estimated at around $162 billion, which was well below projections and its 2014 income. On the other hand, the country spent $260 billion, ministry officials said at a press conference in Riyadh.
The price of oil fell close to $37 a barrel on Monday, nearly a 11-year low. Reuters said the drop was due to excess supply that has more than halved prices since the downturn began in mid-2014.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!