Saudi to unveil 2016 budget with huge shortfall

Revenues next year are forecast at SR514 billion ($137 billion), down from revenues of SR608 billion ($162 billion) in 2015.

The Budget deficit is the highest in the history of Saudi Arabia, the world's largest oil exporter, but was not as big as some expected.

Lower crude oil prices, down more than 60 percent from mid-2014, are hurting economies from exporting nations like Saudi Arabia that depend heavily on crude oil prices.

A total of withdrawal of $88 billion is believed to have taken place since January 2015 and more could be on the way over the next few months in light of the plunging oil prices.

Over the past few years, there was noticeable difference between the announced budget and the real budget but in 2016, the estimated budget will be very close to the real budget.

"This budget also comes amid challenging worldwide and regional economic and financial conditions, namely a global economic slowdown in growth", it said.

Saudi King Salman bin Abdulaziz Al Saudi said last week that the oil prices won't be an issue as the country can survive with years of money reserves.

The Saudi Finance Ministry said in a statement on its website that loans are aimed to avoid effecting the cash flow in the banking sector.

The Tadawul All Share Index advanced and retreated as much as 1 percent and 0.2 percent, respectively, before rising less than 0.1 percent as of 12:50 p.m.in Riyadh.

Saudi Arabia's government ran a record budget deficit of 367 billion riyals ($97.9 billion) in 2015 because of low oil prices, the Council of Economic and Development Affairs said on Monday.

Non-oil revenue for Saudi Arabia increased 29 percent from previous year to $43.5 billion.