This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-35188807
The article has changed 5 times. There is an RSS feed of changes available.
Version 3 | Version 4 |
---|---|
Saudi Arabia stocks fall sharply on tax rises | |
(about 14 hours later) | |
Saudi Arabia's stock market has fallen sharply after it announced public spending cuts and rises in tax, fuel and energy prices in 2016. | |
The country's main stock index fell 3% in the opening 15 minutes of trade with petrochemical firms worst hit. | |
Saudi Basic Industries, the biggest petrochemical producer, tumbled 8.3% while Saudi Kayan lost 4.8%. | |
Saudi Arabia's budget deficit soared to $98bn (£65.7bn) this year on the back of falling crude prices. | |
In the first budget under King Salman, the kingdom said revenues reached 608bn riyals (£108.7bn; $162bn), down 15% on official expectations. | In the first budget under King Salman, the kingdom said revenues reached 608bn riyals (£108.7bn; $162bn), down 15% on official expectations. |
Spending for the year hit 975bn riyals, some 13% more than forecast. | Spending for the year hit 975bn riyals, some 13% more than forecast. |
To help make up the shortfall, the country's finance ministry said it would cut subsidies for fuel. | To help make up the shortfall, the country's finance ministry said it would cut subsidies for fuel. |
Petrol prices could in some cases increase by as much as 50%, authorities said, although they will remain low by international standards. | Petrol prices could in some cases increase by as much as 50%, authorities said, although they will remain low by international standards. |
Diesel, electricity and water prices will also increase. | Diesel, electricity and water prices will also increase. |
King Salman said the budget came "in light of the decrease in oil prices, the economic and regional and international financial challenges - where global economic growth has declined from its previous level - and the lack of stability in some of the neighbouring states." | King Salman said the budget came "in light of the decrease in oil prices, the economic and regional and international financial challenges - where global economic growth has declined from its previous level - and the lack of stability in some of the neighbouring states." |
Oil revenue | Oil revenue |
Oil prices have plunged from a five-year high of $125 a barrel in March 2012 to just $37.18 now. | Oil prices have plunged from a five-year high of $125 a barrel in March 2012 to just $37.18 now. |
Saudi Arabia said that oil revenues, which make up 77% of the total revenue figure for 2015, are down 23% compared to last year. | Saudi Arabia said that oil revenues, which make up 77% of the total revenue figure for 2015, are down 23% compared to last year. |
It is the largest member of the Opec oil-producing cartel and has refused to cut output in order to raise prices in an attempt to put other producers - mainly US shale oil companies - out of business. | It is the largest member of the Opec oil-producing cartel and has refused to cut output in order to raise prices in an attempt to put other producers - mainly US shale oil companies - out of business. |
Saudi thinks it can withstand low oil prices for longer than US producers, many of which are small, heavily-indebted firms. | Saudi thinks it can withstand low oil prices for longer than US producers, many of which are small, heavily-indebted firms. |
Spending on military and security projects reached 20bn riyals in 2015, Saudi Arabia said, following its intervention in Yemen as well as action against militant group Islamic State. | Spending on military and security projects reached 20bn riyals in 2015, Saudi Arabia said, following its intervention in Yemen as well as action against militant group Islamic State. |
The majority of the increase in overall spending was on salaries to civil and military Saudi employees. | The majority of the increase in overall spending was on salaries to civil and military Saudi employees. |