RIYADH, Sept 6 (Reuters) - Saudi Arabia's government is cutting unnecessary expenses to compensate for low oil prices and may delay some projects, though ones that are important for the economy will go ahead, Finance Minister Ibrahim Alassaf said.
Alassaf, visiting Washington with Saudi Arabia's King Salman and other top officials, was speaking to CNBC Arabia in an interview broadcast on Sunday.
"We have built reserves, cut public debt to near-zero levels and we are now working on cutting unnecessary expenses while focusing on main development projects and on building human resources in the kingdom," he said.
"There are some projects like the ones that have been approved a few years ago and haven't been carried out until now - that means such projects are not currently necessary and can be delayed," he added.
"Projects in sectors such as education, health and infrastructure are not only important for the private sector but also for the long-term growth of the Saudi economy."
In July, Riyadh began issuing sovereign bonds for the first time since 2007 in order to help cover a huge state budget deficit created by cheap oil.
Alassaf said the government would continue issuing bonds and might also sell Islamic bonds, or sukuk, to finance specific projects.
"There may be an issue (of sukuk) before the end of 2015 but I cannot say this will continue - it all depends on the need to finance the budget deficit." (Reporting by Marwa Rashad; Writing by Andrew Torchia)
