ABSTRACT
The revenue and expenditure picture in Saudi Arabia is best dealt with from the perspective of its development strategy and in the context of Saudi Arabia's relations with the United States. Saudi Arabia's special economic partnership with the United States has a promising future, simply because the United States is one of Saudi Arabia's most important commercial partners. It is the largest source of Saudi imported goods and Saudi Arabia is the sixth largest importer of US exports globally and the largest market for US goods in the Middle East. Oil revenues are vital for Saudi economy. In general, fiscal policy over the last three fiscal years has been governed by the following considerations: the international adjustment process, the absorptive capacity of the economy, maintaining domestic economic activity, controlling inflation, and most important, revenue from oil. The economic and financial strategy of Saudi Arabia shows that Saudi Arabia means business by adjusting very carefully to the realities of oil markets.
