The Saudi Ministry of Finance announced today the preliminary statement of the budget for the fiscal year 2024, amid expectations that the total expenditures will amount to about 1,251 billion riyals, and total revenues about 1,172 billion riyals, and it is estimated that a limited deficit will be recorded at about 1.9% of GDP, while continuing to raise the efficiency and effectiveness of spending and fiscal control, the sustainability of public finances, the implementation of economic and financial reforms, achieving the goals of Saudi Vision 2030, its programs, initiatives and major projects, and continuing work to raise the level of services provided to citizens and residents, in addition to promoting the growth of local investment by empowering the and qualifying it to include all regions of the kingdom.
The preliminary statement of the fiscal year 2024 budget reflects the proactive structural and financial reforms taken by the kingdom to enhance the ability of its economy to face economic challenges and developments, which is evident in the positive performance of economic indicators, which resulted in continuing to achieve GDP growth rates, improving the performance of the non-oil sector and increasing the number of employed, in addition to continuing to support the social protection system and achieving the goals of the financial sustainability program, directing expansionary spending to accelerate the implementation of major programs and projects, sectoral and regional strategies, contributing to GDP growth and attracting investments, and it stimulates Economic activity, while continuing to work on developing the performance of the kingdom's public finances, by increasing the financial space and building Government reserves, in a way that enhances the kingdom's economy's ability to face global financial crises, maintain sustainable public debt levels, and enable it to overcome challenges that may occur in the future on the structure of public finances or affect the growth of economic activity, as well as work to strengthen the capital of national funds.
His Excellency the minister of Finance, Mr. Mohammed bin Abdullah Al-Jadaan, stressed the government's continuation of the process of structural reforms on the financial and economic sides in order to develop and diversify its economy and raise sustainable economic growth rates while maintaining financial sustainability, through continuing to implement the programs and projects of the Saudi Vision 2030, in addition to launching many initiatives and strategies that contribute to the development of promising economic sectors, enhancing investment attraction, stimulating industries, raising the percentage of local content and Saudi non-oil exports, pointing to the active and important role of the public investment fund, development funds, as well as the continuity of Structural reforms that enhance the GDP growth of non-oil activities at high and sustainable rates in the medium term.
He added that the process of analyzing the financial and economic risks facing the kingdom's economy is a vital part of understanding the current situation, as it contributes to adopting effective policies and strategies to deal with these risks.
Al-Jadaan explained that despite the fears and crises witnessed by the world and the accompanying challenges and their impact on the slowdown of the global economy caused by the repercussions of the covid-19 pandemic and geopolitical tensions that have negatively affected global supply chains, the kingdom's economy enjoys a solid financial position, with financial space represented by strong government reserves and sustainable levels of public debt that and strategies.
He pointed out that this comes as a result of many structural reforms and sectoral and regional strategies within the Saudi Vision 2030, stressing that the government attaches great importance to strengthening the social support and protection system in order to protect citizens from local and global repercussions.
He pointed out that the positive expectations of the Saudi economy for the year 2024 come as an extension of the positive developments of its actual performance since the beginning of 2021, where the estimates of economic growth rates for the year 2024 and the medium term have been revised, and the preliminary estimates for the year 2024 indicate real GDP growth of 4.4%, supported by GDP growth for non-oil activities, with the expectation that the private sector will continue to lead economic growth, contribute to increasing business opportunities and job creation in the labor market, in addition to improving the trade balance, and continuing to implement programs and initiatives to achieve the vision of Saudi Arabia 2030, sectoral and regional strategies and projects Economic activities will achieve positive growth rates during the year 2024 and in the medium term.
H. E. The Minister of Finance explained that it is estimated that the remarkable and expected recovery in the kingdom's economy will lead to positive developments on the revenue side in the medium term, pointing out that this recovery reflects the effectiveness of the economic reforms taken by the government within the framework of the financial sustainability program, which focuses on developing the medium-term financial planning process, with the aim of sustaining and stabilizing the public financial situation, while maintaining economic growth rates, through diversifying revenue sources, raising spending efficiency and stimulating the growth of the private sector.
Al-Jadaan pointed out that the total revenues for the year 2024 are expected to reach about 1,172 billion riyals up to about 1,259 billion riyals in 2026, while it is estimated that the total expenditures will reach about 1,251 billion riyals in the fiscal year 2024 up to about 1,368 billion riyals in the fiscal year 2026, pointing out that in light of these developments and to complement the process of economic and financial reforms, and the adoption of financial policies that contribute to achieving stability and sustainability of the state budget for the fiscal year 2024, it is expected the 2024 budget should record deficits limited to 1.9% of GDP.
He also pointed out that the government is working to continue borrowing in accordance with the approved annual borrowing plan to finance the expected budget deficit and to repay the principal debt due in 2024, in addition to looking for opportunities available according to market conditions to implement additional financing operations to pay the principal dues for the coming years, financing some strategic projects, and taking advantage of market opportunities to implement alternative government financing operations that will enhance economic growth, such as financing capital and infrastructure projects, to diversify financing channels to maintain the efficiency of markets and enhance their depth. The size of the public debt portfolio is expected to increase as a result of the expansion in spending to accelerate the pace of implementation of some programs and projects with possible economic and social benefits to achieve the goals of Saudi Vision 2030.
The Ministry of finance issues the preliminary statement of the state general budget for the fiscal year 2024 as one of the elements of the government's policy in developing the methodology for preparing the general budget, placing it in a comprehensive financial and economic framework in the medium term, enhancing transparency and financial disclosure, and financial planning for several years.through the statement, it aims to inform citizens, interested parties and analysts about the most important local and international economic developments affecting the preparation of the next year's budget, in addition to the most important financial and economic indicators for 2024 and the medium term. The statement reviews the most important programs and initiatives planned to be implemented during the next fiscal year and the medium term within the framework of the goals of Saudi Vision 2030.