Saudi Deficit Deepens on War-Related Spending

Saudi Arabia has revised its projected budget deficit upward, citing increased spending to counter the effects of the ongoing regional war and accelerate economic diversification efforts.

The Ministry of Finance estimates a fiscal shortfall of 4.9% of gross domestic product this year, surpassing an earlier forecast of 3.3%, according to a statement released on Wednesday.

This revised projection still represents improvement from last year's deficit as the spike in oil prices contributes to higher revenue and Riyadh benefits from record non-oil income.