KSA’s Budget - Growth and Development

​​​The Kingdom of Saudi Arabia continues to issue budgets with huge numbers under the umbrella of the Kingdom's Vision 2030 programs, reflecting the strength of its economy; it recorded its lowest fiscal deficit in eight years in the 2021 budget at 85 billion riyals, 71% lower than what was estimated at 141 billion riyals, due to actual expenses of 1015 billion riyals against revenues of 930 billion riyals, which were supported by a raise in both oil and non-oil revenues, with non-oil revenues at an all-time high. The Ministry of Finance (MOF) expected to shift to surpluses as of 2022 by 90 billion riyals “expenditures of 955 billion riyals , against 1045 billion riyals in revenues", followed by a surplus of 27 billion riyals in 2023, and a surplus of 42 billion riyals in 2024, proving that the Kingdom is on a positive path in maintaining the Public finance recovery and stability , as well as in its continued ​​support for the process of diversification and economic growth.According to the budget statement issued by the MOF, the real GDP of the kingdom is expected to grow by 7.4% in 2022, 3.5% in 2023 and 4.0% in 2024 , reflecting the government's continued commitment to the volume of planned spending in the medium-term, and its focus on achieving higher efficiency and effectiveness in directing government spending and utilising available resources to achieve the best return from them, while maintaining financial stability as a key pillar of sustainable growth.This growth is supported by investments of the Public Investment Fund (PIF), improvement in private sector output and government spending, as well as private consumption. Accordingly, inflation rates are expected to decline to about 1.3% in 2022, and 2% in 2023 and 2024. Everyone realizes the leading role played by the Kingdom in the oil sector, and the great efforts made by the Kingdom under the leadership of HRH the Crown Prince to return oil prices to previous levels. The cumulative effect of the development of the non-oil sector and the involvement of the private sector is ever more pronounced nowadays, which has contributed considerably in achieving the objectives of the Kingdom's vision despite the economic challenges posed by COVID-19 pandemic at the local and international levels. Many indicators have shown that economic activities continue to grow and return to pre-pandemic levels.