Question

1. Discuss Impact of COVID 19 on Saudi Arabia budget 2020

Answer 1

Answer:
COVID-19 has impacted most of the nations across the globe, so saudi Arabia is also not different in this context. Saudi Arabia budget is mostly formed keeping COVID-19 and its implications in other part of the world including their own country into account, few of the impacts on the budget is given below:

• Growth in Non oil sector : Because of COVID-19 and nationwide lockdown in many countries the demand of oil has decreased to a decade low, saudi arabia being largest exporter of oil in the world is hugely affected by it. To tackle this in the budget it was targetted to start focusing on non oil sector as well to generate revenue.
• Spending and Expenditutre : The givernment have approved 1.02 trillion riyal expenditure in various sectors to bring economy on track. This budget allocations will be used in following sectors:
  • Health sector to tackle COVID-19 issues
  • providing minimum support allowance to its citizens
  • Infrastructure development
• Increase in Budget Deficit : Because of decrease in export of oil and its price due to COVID-19 the budget deficit is expected to reach 4.7% of its GDP of 2019
• Decrease in Growth : Even the projected growth is also decreased because of circumstances raised by COVID-19 which will affect 2020 GDP value as well.

(plz give me a thums up...if my answer helped you and if any suggestion plz comment, Yr thums up boost me)