Saudi Arabia unveiled its budget for 2016 with a projected deficit of 326 billion riyals ($87 billion), as the oil-rich kingdom has been hit hard by low oil prices. Government spending for the next year was expected at 840 billion riyals, according to data unveiled at a press conference yesterday.The budget is the first under King Salman, who took over the helm of the monarchy in January. He has stressed spending on social services and infrastructure projects will remain strong.Saudi Arabia, the world's largest petroleum exporter, and other resource-rich Gulf states are struggling as a result of low oil prices. There have been discussions in the region on finally introducing some taxes, such as a sales tax, in the coming period. According to Saudi-owned broadcaster Al-Arabiya, nearly three-quarters of the country's revenue in 2015 came from oil.Riyadh maintained high spending this year and launched an expensive military intervention in Yemen, paying for it by tapping into the huge fiscal reserves it accumulated when oil prices were high.The kingdom withdrew more than $80 billion from its reserves, which stood at $732 billion at the end of 2014. It also issued an estimated $20 billion of domestic debt.The International Monetary Fund (IMF) this year had predicted a large Saudi deficit, but said it would decline in the future as one-off projects were scaled back. Growth, however, was expected to slow during 2015 and the following year, the IMF said, adding that reforms were needed, especially to boost the private sector.The IMF and other institutions have advised Riyadh and other Gulf countries, which rely heavily on oil income, to diversify their economies and reduce spending, especially on generous state subsidies and wages.Salman told the consultative Shura Council on Wednesday that he had ordered economic reforms. "Our vision for economic reform is to increase the efficiency of public spending, utilize economic resources and boost returns from state investment," he said. Oil income accounts for more than 90 percent of public revenue in Saudi Arabia.Russia blames Saudis for falling oil pricesRussian Energy Minister Alexander Novak blamed Saudi Arabia for the decrease in global oil prices by increasing its crude oil production.Speaking to Russian news channel Rossiya 24, Novak said Saudi Arabia increasing its production by 1.5 million barrels per day this year has destroyed the stability in the global oil market - even though the Organization of the Petroleum Exporting Countries (OPEC) had previously said the sharp decline in oil prices was non-OPEC countries' fault due to their high production levels.Moreover, Novak said he believes the supply-demand balance in oil markets will be restored in the second half of next year.However, he warned against other fluctuations in the market since Iran is likely to raise its production once Western sanctions are lifted. Last week, the barrel price of Brent type oil had dropped even further below the lowest level observed in 2008, under $30 - the lowest price since 2004.