The Saudi budget deficit for 2020 increased from $50 billion to more than $79 billion by the end of the year, according to the government Tuesday. 

The massive increase comes against the backdrop of the coronavirus crisis and the decline in oil prices.

However, the Saudi Ministry of Finance expects this deficit to decline to more than half by the end of next year, despite its admission that it was "difficult to predict the time required for recovery," after it reduced expenditures in the 2021 budget compared to 2020 expenditures.

The kingdom, the world's largest oil exporter, is trying to diversify its economy, which has been hit hard by low crude prices, closures, and fears related to the emerging coronavirus.

Riyadh, which hosted the annual G20 summit by video link last month, is seeking to fund the young Crown Prince Mohammed bin Salman's plans that focus on tourism and entertainment and investing in technology and artificial intelligence.

"This year has been a difficult year in the history of the world that has necessitated exceptional measures and initiatives," Saudi King Salman bin Abdulaziz said during a cabinet session.

He stressed that next year's budget gives "priority to protecting the health and safety of citizens and residents, and continuing efforts to limit the effects of this pandemic" on the largest economy in the Arab world.

It is reported that the deficit in 2019 amounted to about $35 billion.

The expected expenditures in the budget for next year are 990 billion riyals (about 264 billion dollars), compared to 1020 billion riyals (about 272 billion dollars) in 2020.