Saudi Arabia cuts defence spending
by Charles Forrester
Saudi Arabia will cut its defence budget for 2021 by 3.8% to SAR175 billion (USD46.62 billion), marking a continued decline in the country’s defence spending, according to budget documentation released on 16 December.
Overall government spending was reduced to SAR990 billion, down 2.94% year-on-year. Government revenues are anticipated to be SAR849 billion, creating a budget deficit of SAR141 billion, or 4.9% of GDP. Defence expenditure as a percentage of public expenditure is expected to remain relatively stable in nominal terms at 17.68%. Defence spending as a proportion of GDP is also forecast to decline from 7.04% in 2020 to 5.81% in 2021, a level not seen since 2013, as the overall budget is also reduced to 2014 levels.