Riyadh, September 30, 2023, The Saudi Ministry of Finance unveiled its pre-budget statement for FY 2024 on September 30, 2023. The statement outlines estimated total expenditures of SAR 1,251 billion and total revenues of SAR 1,172 billion, resulting in a modest deficit of around 1.9% of GDP. These figures align with the government's commitment to enhance fiscal sustainability, promote economic and fiscal reforms, and boost the efficiency of spending.
These efforts are in line with the broader objectives of Saudi Vision 2030, aimed at stimulating domestic investment, enabling the private sector's contribution, and improving services for citizens and residents. The pre-budget statement underscores the proactive structural and fiscal reforms implemented by the Kingdom, leading to positive economic indicators, GDP growth, expansion of the non-oil sector, and an increasing labor force.
Key highlights include continued support for social protection programs, directing expansionary spending towards vital programs and projects, and focusing on economic growth, attracting investments, and stimulating the local economy. The Kingdom remains resilient in the face of global economic challenges, with strong government reserves and sustainable levels of public debt to address potential crises. Additionally, flexible spending measures allow for medium-term control, extending implementation periods for projects and strategies.
The Minister of Finance, Mohammed bin Abdullah Al-Jadaan, emphasized ongoing fiscal and economic structural reforms to diversify the Saudi economy, increase economic growth, and maintain fiscal sustainability. He highlighted the role of Saudi Vision 2030 in developing economic sectors, enhancing investment attractiveness, boosting industrial growth, and promoting local content and non-oil exports. Strengthening the social protection system to shield citizens from global economic shocks remains a priority.
The pre-budget statement anticipates robust economic growth rates for FY 2024 and the medium-term, supported by structural reforms and sectoral strategies within Saudi Vision 2030. The private sector is expected to play a pivotal role in driving economic growth, job creation, and trade balance improvement.
Al-Jadaan underscored the importance of revenue diversification, expenditure efficiency, and private sector growth in the Fiscal Sustainability Program. Total revenues for FY 2024 are estimated at SAR 1,172 billion, increasing to SAR 1,259 billion by FY 2026. Total expenditures are projected to reach SAR 1,251 billion in FY 2024, rising to SAR 1,368 billion in FY 2026.
To finance the budget deficit and address principal debt obligations in 2024, the government will follow its approved annual borrowing plan. Additionally, it will explore financing opportunities based on market conditions to support strategic capital projects and infrastructure, diversify financing channels, and deepen debt markets.
The Ministry of Finance's publication of the pre-budget statement for FY 2024 aligns with its approach to transparent fiscal planning, providing insights into major economic developments, fiscal and economic indicators, and initiatives aligned with Saudi Vision 2030. This approach aims to inform citizens, stakeholders, and analysts about the economic framework and goals for the coming years.
