Overview of Saudi Arabia’s Preliminary Budget Statement for Fiscal 2024
Introduction
The Treasury has recently released its preliminary budget statement for fiscal 2024, providing insights into the country’s economic projections. This summary aims to present the key highlights of the statement in a simplified manner for a general audience.
Revenue and Expenditure Estimates
According to Finance Minister Mohammed bin Abdullah Al Jadaan, the government anticipates total revenue of approximately 1.172 billion riyals in 2024. This figure is projected to increase to around 1.259 billion riyals in 2026. On the other hand, total expenditure is estimated to reach about 1.251 billion riyals by 2026, while in fiscal year 2024, it is expected to be around 1.368 billion riyals.
Deficit and Economic Growth Expectations
Minister Al Jadaan highlights that the 2024 budget forecasts a modest deficit of about 1.9% of the country’s gross domestic product (GDP). Additionally, preliminary estimates for the same year indicate a real GDP growth rate of 4.4%. This growth is expected to be supported by the expansion of non-oil domestic product.
Government Reforms and Initiatives
The Saudi Arabian Finance Minister emphasizes that the government remains committed to implementing structural reforms in the financial and economic sectors. They plan to introduce various initiatives and policies aimed at developing promising sectors of the economy, enhancing investment attractiveness, boosting industries, and increasing the share of local content and Saudi non-oil exports.
Economic Risks and Financial Position
Minister Al Jadaan underscores the importance of analyzing the financial and economic risks faced by the Kingdom. Despite global crises impacting supply chains, he reassures that the Saudi economy is in a robust financial position. The government possesses strong reserves and maintains sustainable levels of public debt, enabling them to effectively address any future crises that may arise.
Source
Source: “SPA”
