Saudi Arabia's budget deficit dropped by 71 per cent in the first quarter of the year, the government said on Thursday, after spending cuts and a major rebound in oil revenues.

The world's top crude exporter has made an aggressive push to diversify its traditionally oil-dependent economy after the drop in global prices since 2014 slashed its revenues. Finance Minister Mohammed Al Jadaan on Thursday said the deficit had dropped to SR26 billion ($6.93 billion) in the first three months of the 2017 fiscal year.

Saudi Arabia's budget deficit was initially projected at $53 billion for the whole year, after an even bigger deficit last year. "This is a very encouraging figure and clearly reflects our aim to achieve a balanced budget in 2020," Al Jadaan said.

This is the first time that Saudi Arabia has released budget figures on a quarterly basis, a measure it says is aimed at boosting transparency. Total revenues for the first quarter were at SR144.076 billion, an increase of 72 per cent from the same quarter last year.

Oil revenues were notably up in the first quarter at SR112 billion with a growth rate of 115 per cent from the same quarter last year, driven by a hike in crude prices in international markets. Non-oil revenues for the first quarter were reported at SR32 billion, a one per cent increase from the same quarter last year. Expenditure stood at SR170 billion for the first quarter, down three per cent.

Source: Khaleej Times