Saudi Arabia To Post $98 Billion Deficit Amid Plunging Oil Prices

Saudi Arabia's government unveiled its 2016 budget on Monday and expects to record a deficit of 327 billion riyals (approximately $87 billion), according to Al Arabiya.

Saudi Arabia's government collected 608 billion riyals throughout 2015, 73 percent of which were derived from oil revenue. The government also posted a record deficit of 367 billion riyals in 2015.

The Saudi government noted that its 2016 forecast is based on an oil price of $45 per barrel.

Reuters reported at around the same time of Saudi Arabia's announcement that the price of oil fell to around $37 a barrel and that oversupply of the commodity will persist into the earlier part of 2016.

Bloomberg also pointed out that the Saudi government plans on cutting subsidies and selling stakes in government entities to counter the sharp decline in oil revenue in the coming year.