The Saudi budget statement for the first quarter of 2024 highlighted the government’s continued efforts to complete the reform process and achieve financial sustainability in the face of global challenges.
Saudi Arabia considers strengthening non-oil activities and empowering the private sector to be two pillars of Vision 2030. Last year, non-oil activities in Saudi Arabia grew by 4.7 percent, and recorded their highest contribution to real GDP ever at 50 percent.
Non-oil revenues in Saudi Arabia during the first quarter of 2024 amounted to about SAR 111.5 billion ($26.7 billion), an increase of 9 percent, compared to SAR 102.3 billion ($27.28 billion) in the same period last year.
Oil revenues reached SAR 181.9 billion ($48.5 billion), recording an increase of 2 percent compared to the first quarter of 2023, as total revenues reached SAR 293.433 billion ($78.2 billion).
This increase comes in light of the continued implementation of structural initiatives and reforms to diversify the economy and enhance non-oil revenues, in addition to developing tax administration and improving collection procedures.
Expenses
Total expenses in the first quarter of 2024 amounted to SAR 305.8 billion ($81.5 billion), recording an increase of 8 percent compared to the same period in 2023, where they reached SAR283.9 billion ($75.7 billion).
The government has continued to provide social support to those eligible, in addition to developing the level of public services provided to citizens and residents, and implementing many projects and strategies that achieve positive structural changes, with the aim to diversify the economic base.
Deficit
The budget deficit at the end of the first quarter of 2024 amounted to about SAR 12.4 billion ($3.3 billion), compared to about SAR 2.9 billion ($773 million) in the same period last year, due the Saudi trend to adopt expansionary spending for activities with economic returns, while accelerating the implementation of projects and programs with social and economic incomes.
At the same time, the Kingdom’s fiscal policy aims to achieve a balance between promoting economic growth, maintaining financial sustainability and developing non-oil revenues, while working to raise the efficiency of spending and increase the participation of the private sector in the economy.
Public debt
The total public debt until the end of the first quarter of 2024 was about SAR 1,115.8 trillion ($297.5 billion), including SAR 665.0 billion ($177.3 billion) in internal debt.
The figures of the first quarter of 2024 confirm that the government is completing the financial and economic reforms within the framework of Saudi Vision 2030, with the aim to achieve financial sustainability in the medium and long terms and enhance the strength of the economy, in the face of global economic challenges and developments.
Health and social development
Government support for the sectors of health, social development and municipal services is considered one of the pillars that contribute to improving and raising the quality of public services provided to citizens and residents, and thus promoting the quality of life, in accordance with Saudi Vision 2030.
Total spending on these sectors by the end of the first quarter of 2024 amounted to about SAR 87.3 billion ($23.28 billion), registering an increase of 22 percent compared to the same period last year.
Goods and services expenses
The first quarter report showed a significant increase in expenses on goods and services compared to the same period last year, as a result of a rise in expenditures on medical supplies for the health and social development sector, and the military.
This comes in parallel with an increase in spending on many programs and strategies related to promising sectors, including sports, in addition to the country’s efforts to develop the tourism sector.
The first quarter report also showed a significant increase in spending on the municipal services sector compared to the same period last year. This includes spending on developmental housing programs, which will contribute to raising the percentage of property ownership among Saudi families, as well as spending on a number of projects and initiatives aimed at improving the quality of life of citizens, such as the sports track project and the green suburbs initiative.
Non-oil revenues
The first quarter report also highlighted a rise in non-oil revenues compared to the same period or 2023.
The consumer spending index grew by about 10.6 percent during the first quarter, while bank credit granted to the private sector increased by about 10.1 percent and the number of factories that started production reached about 172 during the first two months of this year.
Economic strength
In remarks to Asharq Al-Awsat, Shura Council member Fadl al-Buainain said that the results of the Saudi budget during the first quarter of 2024 confirmed Saudi Arabia’s trend to expand spending on the health and social development sectors.
He noted that the figures also showed the government’s keenness to complete financial and fiscal reforms within the framework of Saudi Vision 2030.
