Saudi Arabia expects a $52.8bn budget deficit in 2017, compared with $87bn in 2016, as the region’s largest economy continues its economic reform plans taking it to 2030.

The state budget, which was announced on 22 December, aims to maintain a budget deficit of approximately 7.7 per cent of GDP, according to a statement from the finance minister

Public revenues are also expected to increase from SR513bn ($137bn) in 2016 to SR692bn ($184bn) in 2017 following an uptick of oil prices in the last quarter of this year. The kingdom’s finance ministry also projected oil prices for next year to average $54 a-barrel, following the Opec agreement earlier this month that will see member countries cut production to protect prices

In the 2017 budget, Riyadh said it would increase spending to SR890bn from the SR840bn originally projected for 2016.

The finance ministry also said that the kingdom will look to cut the deficit to SR198bn with the help of higher oil prices and non-oil revenues. Stronger revenues will allow Riyadh to boost spending following limited public spending over the past 18 months since the downfall of the price of oil.

Earlier this year Saudi Arabia removed its previous finance minister, Ibrahim bin Abdulaziz al-Assaf, replacing him with Mohammed bin Abdullah bin Abdulaziz al-Jadaan who currently taking the kingdom on its journey towards achieving the goals set out in the Vision 2030 and National Transformation Programme, which aim to fundamentally transform the Saudi economy.