Financial and structural reforms carried out recently by Saudi Arabia have proven their usefulness and effectiveness.
Figures reveal positive growth in public revenues and increased spending, stimulating the economy to be more active and achieve more growth, which exceeds local and global estimates.
Figures indicated a sharp decline in fiscal deficits during H1 2019 and a 14.4 percent rise in non-oil revenues due to improved economic activity and a package of reform initiatives.
Meanwhile, oil revenues increased by 15 percent year on year.
According to the second quarter performance report of the state's budget for the fiscal year 2019, significant growth in capital expenditure has been noticed during H1, with figures showing 22 percent growth in capital expenditure compared with the same period in 2018.
This growth coincided with progress in the implementation of housing and other developmental projects.
In this context, Saudi Minister of Finance Mohammed bin Abdullah al-Jadaan released the report on Tuesday.
Its results reflect an improvement in financial performance during H1 2019 compared to the same period last year, contributing to the achievement of this year’s targeted results.
They also confirm the effectiveness of the government’s financial and structural reforms, said Jadaan.
The minister drew attention to the increase of non-oil revenue as evidence of successful attempts to diversify government revenue sources.
The results also reflect progress in executing development projects in line with Saudi Vision 2030, he added.
The budget deficit during the first half of 2019 amounted to SAR5.7 billion ($1.5 billion), much lower than SAR41.7 billion in the corresponding period of the previous year.
Total revenues increased by 15 percent while total expenses increased by six percent.
In a statement, Jadaan said the government is in the process of balancing fiscal discipline and raising efficiency to realize the country’s financial targets for 2019.
The targets will be achieved by controlling the deficit rates in the budget and public debt while simultaneously implementing projects, programs, and initiatives to speed up economic growth and improve Saudi citizens’ overall well-being, he stressed.
