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Saudi Budget Expected to Reveal Shift from Deficit to Surplus for First Time in 8 Years

Saudi Budget Expected to Reveal Shift from Deficit to Surplus for First Time in 8 Years

Wednesday, 7 December, 2022 - 10:30
The surplus from the country’s general budget would be directed to boost government reserves and support national funds. (SPA)

The Saudi cabinet is expected to approve the news state budget on Wednesday. 


Experts told Asharq Al-Awsat the budget would reflect the start of a new financial phase, with the end of the deficit that has continued since 2014.  


They explained that the surplus from the country’s general budget would be directed to boost government reserves and support national funds, while emphasizing the success of the government’s financial reforms.  


Fadl Al-Buainain, member of the Shura Council, told Asharq Al-Awsat that the budget for the coming year is expected to register the highest figures during the current decade, with the start of a new financial phase in which the surpluses begin to be harvested.  


He expected this year’s surplus to reach 90 billion riyals ($24 billion), compared to an actual deficit of 73 billion riyals ($19.4 billion) in 2021.  


According to a preliminary statement, revenues for the current year are expected to reach 1.222 trillion riyals ($325.8 billion), and expenditures 1.132 trillion riyals ($301.8 billion), he revealed.  


He added that the government succeeded in completing its financial reforms, achieving fiscal balance, ending the deficit, and focusing on strategic spending according to a disciplined vision that achieves stability, despite the difficult geopolitical and economic conditions in the world.  


Dr. Salem Bajaja, professor of economics at the University of Jeddah, told Asharq Al-Awsat that next year’s budget forecasts confirm the success of government policies.  


He added that the government would maintain financial support in relation to the volume of expenditures in the most important sectors, namely health and education, and the improvement and rehabilitation of public services to include all fields in the Kingdom.  


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