The Saudi Ministry of Finance announced on Wednesday the estimated budget for the 2021 fiscal year, with expected general revenues of 846 billion riyals (USA 225.6 billion), and expenditures of 990 billion riyals (USD 264 billion), with a total estimated budget deficit of 145 billion riyals.
In a preliminary report, the ministry said that the 2021 budget would allow the implementation of economic and financial reforms falling within the Kingdom’s Vision 2030.
According to the statement, the global economy is expected to witness a contraction this year, amid cautious optimism on future growth prospects with the easing of precautionary measures and the resumption of normal economic activity.
Despite the negative impact on the growth expectations of the Saudi non-oil economic sectors this year and the increasing budget deficit, the future outlook looks less gloomy, especially after the gradual return to economic activity, the continued decline in the spread of the virus, and the high rates of recovery, the report underlined.
The Ministry of Finance stated that the ongoing positive developments cast a shadow over the next year’s estimates, which indicate the real GDP to grow by 3.2 percent.
The ministry said more opportunities were available for the private sector and funds to participate in infrastructure development projects, noting that in addition to estimating next year’s expenditures at about 990 billion riyals, the government’s expenditures for the year 2023 are expected to amount to 941 billion riyals.
It also emphasized financial stability and sustainability by maintaining fiscal discipline and raising spending efficiency. The preliminary report expects the total public debt in 2020 to reach about 854 billion riyals, which represents 34.4 percent of the Kingdom’s GDP.
According to the report, government reserves will be maintained at the end of the year according to the approved budget at 346 billion riyals, which accounts for 14 percent of GDP.
