DUBAI, Dec 31: Saudi Arabia on Monday issued its 1997 budget, raising expenditure to 181 billion riyals (48 billion dollars) and narrowing the deficit to 17 billion riyals from 18.5 billion in 1996. reports Reuter.

The kingdom forecast higher revenues at 164 billion riyals in 1997. up from 131.5 billion in 1996. The budget was announced by King Fahad at a cabinet meeting on Monday night and was carried by the official Saudi press agency

Saudi Arabia's 1996 budget had put expenditure at 150 bil- 1 lion riyals.

The decrees commissioned the Saudi finance and economy ministry to borrow to meet the 1 1997 deficit.

King Fahad told the cabinet meeting that the 1997 budget was an important step towards achieving a balanced budget — which Saudi Arabia has said it alms to do by the end of the century — and asserting the strength of the economy