Saudi Arabia’s budget deficit is set to widen to 298 billion riyals ($79.4 billion) this year, as the kingdom reels from an economic downturn in the wake of the coronavirus pandemic and lower oil revenues.

The Saudi Finance Ministry said in its annual budget on Tuesday that it plans to spend 990 billion riyals in 2021, almost 7% lower than its estimate this year.

However, the kingdom aims to significantly lower its budget deficit next year, on hopes of higher oil revenues and improved economic activities.