Saudi Cabinet to Approve 2024 Budget Today
The Saudi Council of Ministers is holding a session today (Wednesday) to approve the state’s general budget for the new fiscal year (2024). Preliminary Statement Expects Expenditures of 1.25 Trillion Riyals and Revenues of 1.17 Trillion. According to Asharq AL -AWSAT Newspaper.
Announcement by Saudi Ministry of Finance
On September 30, the Saudi Ministry of Finance announced the preliminary statement for the next year’s budget. It will estimate expenditures at 1.25 trillion Riyals (approximately 333.5 billion dollars) and revenues at 1.17 trillion Riyals.
Expectation of a Limited Deficit
The Ministry of Finance expects a limited deficit of about 1.9 percent of the Gross Domestic Product in the fiscal year 2024 budget.
Preliminary Estimates for 2024
Initial estimates show a 4.4% real GDP growth for 2024, fueled by non-oil GDP growth. The private sector is expected to drive this growth, increasing business opportunities and jobs.
This growth will also improve the trade balance and support Vision 2030’s programs, sectoral and regional strategies, and major projects. Economic activities are expected to grow positively in 2024 and the medium term.
Statement from Saudi Finance Minister, Mohammed Al-Jadaan
According to the statement, Saudi Finance Minister Mohammed Al-Jadaan said that the government is continuing the process of structural reforms in the financial and economic aspects, aiming to develop and diversify the economy. “This is to achieve sustainable economic growth while maintaining financial sustainability,” he noted.
Finance Minister on Economic Recovery, Revenue
The Finance Minister expects the Saudi economy’s recovery to boost revenue in the medium term. Consequently, the government plans to borrow as per its yearly plan. Specifically, this borrowing will cover the anticipated budget deficit and repay the principal debt in 2024.
Additionally, the government is seeking market opportunities for extra financing. This extra financing will cover upcoming debt, support strategic projects, and offer alternative government financing to stimulate economic growth.
Furthermore, funding will focus on capital projects and infrastructure. This strategy aims to diversify financing sources, improve market efficiency, and deepen market involvement.
Due to increased spending, the public debt portfolio is likely to grow. Therefore, this spending aims to speed up certain programs and projects, yielding economic and social benefits. Ultimately, these efforts align with achieving the goals of “Saudi Vision 2030.”
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