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LONDON: Saudi Arabia's spending plan as announced in its pre-budget statement on Thursday is a positive development for the credit rating of the Kingdom, rating agency Moody's said.
“The 2022 pre-budget statement confirmed the government’s plans for further spending cuts during 2022-23, in line with the previously published Fiscal Balance Program. This is credit positive as it underscores the commitment to spending restraint despite significant upward revisions to revenue projections amid higher oil prices,” said Alexander Perjessy, VP-Senior Analyst at Moody’s.
“Furthermore, the government’s preliminary fiscal estimates for the current year indicate that spending overruns relative to budgeted amounts continue to decline,” he added in an emailed comment.