Saudi Crown Prince: The deficit in 2021 decreased to 2.7% of GDP
Saudi Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister, and Chairman of the Council of Economic and Development Affairs, confirmed that spending in the Kingdom’s economy will reach SAR 27 trillion by 2030.
In his speech on the occasion of approving the Kingdom’s budget for the year 2022, the Crown Prince explained that the journey of economic transformation adopted by the Kingdom’s government continues to achieve the achievements and targets following the directives of the Custodian of the Two Holy Mosques. A thriving economy and an ambitious country.
Prince Mohammed bin Salman added that the 2022 budget supports the post-pandemic financial and economic goals, expecting financial surpluses in the 2022 budget to exceed 2.5% of the Kingdom’s GDP, and the deficit in 2021 amounted to about 2.7% of GDP compared to 11.2% in 2020.
He explained that the government is committed in the 2022 budget to the amount of planned spending in the medium term, which was previously announced during the past year.
The Crown Prince also expected to achieve budget surpluses for the fiscal year 2022, by completing work on developing the financial planning process and raising spending efficiency, in addition to developing diverse and more stable sources of government revenue, which supports the objectives of the financial sustainability program, which seeks to complete the march towards enhancing economic stability and sustainability on the medium and long term.
In a press statement following the announcement of the state’s general budget for the fiscal year 2022, he said that the financial and economic results and indicators confirm that Saudi Arabia is progressing positively, as next year’s budget comes amid a global climate characterized by great challenges in light of the repercussions of the (Covid 19) pandemic, and great ambitions locally.
The Crown Prince stressed that the economic recovery, initiatives, and policies of financial control, and the development of public financial management and its efficiency contributed to continuing to reduce the budget deficit while maintaining the achievement of the main goals of the vision.
It is expected that the deficit in 2021 will reach about 2.7 percent of GDP compared to 11.2 percent in 2020, affected by the pandemic.
While it is expected to achieve financial surpluses that may exceed 2.5 percent of GDP in 2022, these surpluses will be used to increase government reserves to meet the needs of the Corona pandemic, strengthen the Kingdom’s financial position, and raise its capabilities to face global shocks and crises.
Prince Mohammed bin Salman indicated that the Kingdom’s Vision 2030 focuses on achieving and deepening the impact and involving the private sector in the transformation journey to bring about a qualitative leap in various sectors.
“We have made progress in implementing some programs that will contribute to progress and development in various fields, and diversify the economy,” Saudi Crown Prince Said.
The Crown Prince made it clear that strategies, programs, initiatives, and procedures are reviewed and updated regularly to ensure their effectiveness and correct their course whenever the need arises, to achieve the objectives of the Kingdom’s Vision 2030.
