Financing the Budget Deficit Due to the implementation of measures to reduce spending, expenditure was lower than initially projected, and as result, the 2016 deficit will decrease to an estimated SAR 297 billion, significantly lower than its highest level in 2015 at SAR 366 billion. Borrowing from local and international markets also helped to reduce the deficit. The total value of debt instruments issued locally and internationally, in addition to loans, during the current fiscal year 1437/1438H (2016) has reached SAR 200.1 billion. The total national debt for the fiscal year 1437/1438 (2016) was approximately SAR 316.5 billion, which is 12.3% of the projected GDP in fixed prices for 2016. The total expenditure to service the national debt during the current fiscal year is expected to be SAR 5.4 billion, while the cost of servicing the national debt for the coming fiscal year 2017 is expected to be SAR 9.3 billion. The remainder of the deficit was financed by drawing from the government’s reserves. The table and diagram below explain internal and external debt until the end of the current fiscal year 1437/1438H (2016). National Debt (SAR billion) Local National Debt213.4 International National Debt103.1 Total National Debt316.5 --More 19:41 LOCAL TIME 16:41 GMT www.spa.gov.sa/w296777