Saudi May Cancel $20B of Government Projects

The video discusses a $20 billion cost-cutting plan aimed at reducing the budget deficit, which was 16% of GDP last year, with a target to balance it by 2020. The plan includes reviewing projects worth $70 billion and potentially cutting ministry spending by a quarter. However, these measures may negatively impact economic growth, with a median expectation of 1.5% growth this year, the slowest in a decade. The private sector, reliant on government spending, could suffer, and without alternative economic drivers, the situation may worsen.

What is the target year for balancing the budget deficit according to the text?

What are the implications of cutting government spending on the private sector?