During the current recession on the commodity markets, some countries have faced tremendous challenges. Saudi Arabia is one of the key players on the global oil market. The country’s wealth to a great extent depends on the price of oil. Some experts forecast that the current price of oil is able to deplete the country’s energy reserves quite soon, and Saudi Arabia will have to seek new sources of money. The country's budget growth is at its weakest since the previous crisis, and the declining trend is not likely to break in the nearest future. The primary issue requiring the government`s action is the diversification of the country`s economy. Since 1969, oil revenues have made up 80% of the national budget, which is an extremely high level for a country playing a significant role on the global economic arena. Since mid-90s, the Saudi have tried to find new sources of diversification of their economy. The steps regarding the future course of national development are currently discussed at the highest level of government. "By 2020, we will be able to live without oil," said Prince Salman in an interview on Al-Arabiya. He says that the reforms are to be implemented gradually: "2015 was a year of rapid measures, 2016 - year of a more organized fast action and the beginning of the implementation of the development plan up to 2017". Starting in 2014, the average price of oil has been below the budgeted figures. Currently, they yield the highest deviation from the forecasts built before 2014. The first results of the new policy will be witnessed by the end of 2016. The non – oil revenue figures have increased by 37% compared to 2015. The structure of non – oil revenue is presented below. 2015 SR Billion 2014 SR Billion % Change Petroleum products tax 16.08 15.04 6.91 Customs duties 25 23.52 6.29 General service fees 1.8 1.611 11.73 Government share in the telecommunications sector 4.4 4.96 (11.33) Documents fees 15.7 14.531 8.04 Other income taxes 14 13.925 .54 Rents & Sales 1.8 1.146 57.07 Investments 37 21.858 81 Other revenues 25.5 9.23 149 Zakat 14.5 14.3 1.4 Fees of port services 4 3.762 6.33 Visa fees 2.7 2.394 12.78 Mining fees .52 .517 .58 Total 163.5 126.796 36.83 The changes were mainly driven by the following categories: Rent & Sales, Investments, and Other Revenues. Being a relatively small part of the total non-oil revenues, Rent & Sales accounts for 1.1% of total budget revenues, while Investments (23% of total non – cash revenues) have made significant changes in the structure of Saudi Arabia`s budget. The results are attributable to the activity of two organizations: the Arabian Monetary Authority (SR 22 billion) and the Public Investments Fund (SR 15 billion). This is a positive sign of the economy`s diversification. As it has been previously mentioned, the break-even price of oil for Saudi Arabia`s budget is $96/bbl in 2016 (Source: Bloomberg). The total budget expenditures of SR 975 billion in 2015 against budget revenues of SR 608 billion imply a 37% hole in the budget. According to the consensus estimate of major investment banks, the growth of oil price will be about 3% per annum through 2023! Assuming the forecasts will be roughly correct, the Saudi Arabian government will have to use reserves to meet the ends, thus diminishing the stability of country`s economy. Some experts consider that Saudi Arabia`s reserves are sufficient to stabilize the budget during potential recessions in the future. Since the summer of 2014, the country`s reserves have decreased by 21%. On the other hand, during the previous crisis, the decline was at 13% approximately in tandem with falling oil prices. In its recent release, the Ministry of Finance of Kingdom of Saudi Arabia has presented a structure of expenditures for 2016. The increase in spending has mainly resulted from additional salaries for civil and military Saudi employees, beneficiaries of social security and retirees – as per the supreme Royal Decrees issued during the current fiscal year - which amounted to SR 88 billion, representing 77% of the total increase in expenditures in addition to spending on military and security projects totaling SR 20 billion, being equivalent to 17% of the increase, and SR 7 billion are to be spent on various other projects. At the moment, Saudi Arabia is one of the top-3 countries (following USA and China) with the biggest military budget in the world. Historically, the high level of spending on military purposes has been caused by an unstable geopolitical climate in the region, which is very unlikely to be improved in the nearest future. The structure of government debt provides a more clear insight into the current situation. By the end of fiscal 2015, public debt is estimated to be SR 142 billion, equivalent to 5.8% of this year`s expected GDP, compared to SR 44 billion a year ago. This figure represented only 2% of that year`s GDP. The debt has increased more than threefold beating all-time highs. With an expected deficit of SR 367 billion and the current level of government debt of SR billion 142, the actual «net» reserves are estimated to be around SR 78 billion. The current recession on the commodities market is destroying the country`s government budget. The rapid increase in the government debt has become a serious issue and demands immediate actions regarding the country`s long-term economic development. With the current price of oil, the government will not be able to cover the budget deficit, and its endeavors to diversify the economy are under threat. Immediate actions are required to sustain long-term economic growth. However, no reasonable plan has been offered so far.