Saudi Arabia’s government plans to spend $229.3bn in 2015 as it expects revenues to plummet due to low global oil prices.

The Ministry of Finance says it expects revenues of $190.7bn in the next 12 months, over $88bn lower than the estimated $278.9bn total from 2014. The shortfall will be made up from government savings accrued over the last four years and a fiscal deficit of over $38bn is expected.

Riyadh is continuing with its massive spending policy and social infrastructure schemes are again high on the list of the kingdom’s priorities.  

Education will be allocated $57.9bn as Riyadh maintains its commitment to the huge capital spending programme it has implemented for schools, universities and vocational training centres. The budget includes funding for 164 projects with a combined budget of $3.7bn and this will add to the $74.7bn from previous allocations.

Health and social affairs will receive $42.7bn from the new budget and this includes both civil and military healthcare provisions. Riyadh is committed to providing 24,000 beds at 117 new hospitals  as well as a further 14,500 at medical cities across the country.  

Preventative measures are also being taken with lavish spending on social welfare. This includes 16 new sports clubs as well as five new centres for Saudis with special needs. Poverty eradication programmes will also benefit from a special appropriation of $8bn.

Other social infrastructure spending plans include another $10.7bn spent on municipality services. This will include investment in drainage, roads systems as well as better control systems for the kingdom’s cities.

Conventional infrastructure and transportation has been allocated $16.8bn out of the 2015 budget, signifying that Riyadh is maintaining its commitment to the vast road, rail, air and seaport building programmes. The Ministry of Finance confirmed that all existing major infrastructure projects that have been approved will continue.

Water, agriculture, industry, and other economic resources will receive $16bn and water projects will be the major beneficiary. Riyadh is planning four new dams as well as major investment in desalination, aquifer wells and expanding and improving water networks.

In other sectors agriculture storage will be improved and money will be made available to augment and expand existing industrial cities.

As well as the conventional budget an additional $19.7bn is expected to be dispersed by credit agencies and industrial funds to help diversify the kingdom’s economy.