Saudi Arabia has succeeded in implementing a policy that relies on diversifying the economy away from oil prices fluctuations, resulting in a budget surplus estimated at about 90 billion riyals (USD 24 billion).
In an analytical reading of the Saudi budget 2022, experts said that the government continued to implement financial reforms to achieve financial balance and enhance spending efficiency, in addition to improving social protection programs.
Member of the Saudi Shura Council, Fadel Al-Buainain, told Asharq Al-Awsat that the government is maintaining its efforts to diversify the base of the economy away from the impact of fluctuations in international oil prices, in order to achieve financial sustainability and reduce the impact of crises.
Increasing spending efficiency, achieving financial control and reducing the deficit are among the government’s most important objectives pertaining to public finance, he added.
Al-Buainain pointed in this regard to the improvement of the 2021 revenues, the deficit decrease and the first budget surplus in eight years, which he said could not be separated from the Kingdom’s distinguished management of the oil file and the achievement of producer consensus within the OPEC+.
“The government’s commitment to the volume of planned spending in the medium term despite the significant increase in revenues and the achievement of a financial surplus means the continuity of financial control and commitment to the specified goals,” he underlined.
“Achieving the highest non-oil revenues ever at 372 billion riyals (USD 99 billion) is an important matter that confirms the government’s relentless pursuit to diversify sources of income in a manner that realizes financial sustainability in the future,” the Shura Council member stressed.
He also highlighted the government’s continuous efforts to diversify the sources of income by raising the efficiency of the economy, making it more attractive to foreign and local investments, and stimulating the sectors targeted by Saudi Vision 2030, especially tourism, technology, mining and industry.
Economist Ahmed Al-Shehri told Asharq Al-Awsat that Saudi Arabia’s 2022 budget would reflect positively on the overall economy, including the growth rate, unemployment, investment, stock market and consumer spending.
The annual revenue growth rate has become a feature of economic policy makers in the Kingdom, he remarked, emphasizing that this reflects the state’s commitment to spending that achieves growth and development at the same time.
