Saudi Budget 2023 Preliminary Statement: Revenues to hit SR1123 bln, expenditures to reach SR 1114 bln, surplus to hit SR9 bln ..

The Ministry of Finance revealed that the estimated revenues of the Saudi budget for the next year 2023 will amount to 1123 billion riyals, while the expected expenditures will be 1114 billion riyals, according to the preliminary statement of the Saudi budget for next year. It is clear from the announced figures that the budget in its next year 2023 will record a surplus of 9 billion riyals, and therefore it is considered the second surplus for the budget for the second year in a row, if the Ministry of Finance estimates a surplus of 90 billion riyals by the end of this year 2022.

According to the preliminary statement, the Ministry of Finance raised the expected revenues for the next year 2023, by amounts up to 155 billion riyals, after it was estimated at 968 billion riyals in previous estimates, to reach in the new estimates to 1123 billion riyals, as well as the expenses that were raised by 173 billion riyals. After it was expected to reach 941 billion riyals in previous estimates as well, to reach, according to the new estimates, 1114 billion riyals, while expectations were reduced for the surplus, with a value of 18 billion riyals, after expectations indicated that it would be 27 billion riyals to be recorded according to the latest estimates, according to the new introductory statement to 9 billion riyals.

In light of global and local developments, three revenue scenarios were prepared in the preliminary statement of the budget for the next year 2023. The first scenario, which is a basic scenario, was based on global and local developments, and this scenario was used to estimate revenues in the 2023 budget, meaning that revenues are as they are 1123 billion riyals and expenditures are 1114 billion riyals. While the second scenario takes into account the realization of revenues at lower levels than the basic scenario, meaning that the expenditures are 1114 billion riyals, while the revenues are 1026 billion riyals, and thus the deficit will be 88 billion riyals. The third scenario includes taking into account the realization of revenues at higher levels than the basic scenario, so that the expenditures are the same as 1114 billion riyals, while the revenues are higher than the estimated in the basic scenario, which records 1192 billion riyals, and thus a surplus of up to 78 billion riyals.

This confirms the government’s shining in its plans towards implementing the financial sustainability program (formerly the fiscal balance), which is one of the programs of the Saudi Vision 2030. The Kingdom’s government aims to complete the economic and financial reforms that it carried out under the vision of the Kingdom 2030, including the development of public finances by achieving the objectives of the program Financial sustainability, which seeks to achieve initiatives of the program to reach the financial balance and make transition to financial sustainability through a number of initiatives and procedures, including the adoption of financial regulation that would contribute to strengthening financial control.

A table showing the expectations of the Saudi budget for the years from 2022 to 2025 (billion riyals)