RIYADH, Dec 10: Oil-rich Saudi Arabia on Monday projected a 2008 budget of $120 billion, with a surplus of $10.7 billion.

The finance ministry, in a statement received by AFP, set revenues at 450bn riyals against spending of 410 billion riyals.

The oil powerhouse in September announced a record budget surplus of more than $77 billion for 2006 thanks to surging crude prices.

The surplus of 290 billion riyals, unveiled in the central bank’s annual report, compared with initial forecasts of a $14.7bn surplus. The final figure for 2005 was $58bn.

The Saudi government normally uses conservative oil price forecasts for its projected budgets. —AFP