Saudis await 2024 budget expecting announcement on ‎Tuesday

Saudis are awaiting the announcement of the Saudi budget for the year 2023 and the estimates for the year 2024, and odds are that the Cabinet session tomorrow, Tuesday, will be devoted to the announcement. This comes at a time when the Kingdom’s economy has shown remarkable growth supported by the government’s continued process of structural reforms on the financial and economic sides.

According to the preliminary statement of the Saudi budget, total expenditures for the year 2024 are expected to reach about 1,251 billion riyals, while revenues will reach about 1,172 billion riyals unless there is a change in the official announcement of the budget. If the numbers remain as they are, it is estimated that a deficit will be recorded during next year’s budget, 2024, at a value of 79 billion riyals, after it was expected to record a surplus of 21 billion riyals.

According to the preliminary budget statement covering the period from 2023 to 2026, revenues are expected to reach 1.18 trillion riyals by the end of the current year 2023, while expenses will reach 1.262 trillion riyals, with a deficit of 82 billion riyals. It is noteworthy that the Saudi budget achieved during the first 9 months of the current year 2023 a deficit of about 44 billion riyals, as revenues during the first three quarters of the current year amounted to 854.3 billion riyals, and expenses 898.3 billion riyals.

According to a previous announcement by the Ministry of Finance, the government budget deficit is expected to continue during the year 2025 to reach 73 billion riyals, and estimates indicate that the deficit will rise to 109 billion riyals in the year 2026. Government expenditures are expected to rise further during the three years. The future will be in light of lower revenues, which will result in budget deficits

It is noted that expenditures increase year after year until 2026, while revenues record a decline during the current year 2023 compared to the last year 2022 and record another decline in the next year 2024 before returning to rise again in the years 2025 and 2026.

The government continues the process of structural reforms on the financial and economic aspects with the aim of developing and diversifying its economy and raising rates of sustainable economic growth while maintaining financial sustainability, by continuing to implement the programs and projects of Saudi Vision 2030, in addition to launching many initiatives and strategies that contribute to Developing promising economic sectors, enhancing investment attraction, stimulating industries, and raising the percentage of local content and Saudi non-oil exports, in addition to the effective and important role of the Public Investment Fund and development funds, in addition to continuing the implementation of structural reforms that enhance the growth of the domestic product of activities. Non-oil production at high and sustainable rates in the medium term

A study conducted by the newspaper (Maaal) revealed that the state’s general budget achieved a deficit in 10 years during the previous 21 years, as it began in the year 2002 with a deficit of 21 billion riyals, and continued since the year 2003 in achieving a budget surplus until the year 2009, which witnessed the recording of A deficit of 87 billion riyals, while the years from 2010 to 2013 witnessed a surplus, before returning to a deficit over the previous 8 years in a row. On the other hand, the general budget achieved a surplus 11 times during the past 21 years, and the surplus reached its peak during the year 2008, when a surplus of 581 billion riyals was achieved.

According to monitoring, the highest (actual) revenues witnessed by the general budget of Saudi Arabia were in the year 2012, when they amounted to 1,247 billion riyals, and a surplus in that year’s budget was recorded at 374 billion riyals, while the lowest revenues achieved were for the year 2002, which did not exceed 213 billion riyals only

It was expected that the year 2021 would be the last year of recording a deficit for the Saudi budget in the near future, after the budget deficit continued for 8 years from the year 2014 until the year 2021, but after the Saudi budget recorded a surplus for the year 2022 at a value of 104 billion riyals, Expectations were that the year 2023 would achieve a deficit of 82 billion riyals, after estimates indicated a surplus of 16 billion riyals, and this comes in light of the uncertainty witnessed in the global economy.

The government continues to work to raise the efficiency and effectiveness of spending and financial control, the sustainability of public finances, implement economic and financial reforms, achieve the goals of Saudi Vision 2030, and its major programmes, initiatives and projects, and continue to work to raise the level of services provided to citizens and residents in addition to enhancing the growth of local investment through The way to empower and qualify the private sector to include all regions of the Kingdom.