King promises economic reforms, fiscal discipline

SR200bn allocated to stimulate private sector: Crown Prince

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Saudi Gazette report

Riyadh —
Custodian of the Two Holy Mosques King Salman on Tuesday announced a SR1.106 trillion budget, the Kingdom’s largest ever, and said the government will move ahead with economic reforms.

The Kingdom estimated 2019 spending to reach SR1.106 trillion, up 7.3 percent from the latest 2018 spending figure of SR1.030 trillion for 2018.

“We are determined to go ahead with economic reform, achieving fiscal discipline, improving transparency and empowering the private sector,” the King said.

“My first concern is to continue working toward achieving comprehensive development in all regions of the Kingdom and in all fields and your government is continuing to achieve this,” the King said.

The expected revenues in 2019 are estimated at SR975 billion with a 9 percent growth rate compared to 2018.

The deficit is expected to decline by 4.2 percent in 2019 hence reaching SR131 billion while public debt will reach SR678 billion and constitute 21.7 percent of the Gross Domestic Product (GDP).

Reserves are expected to reach SR496 billion and would constitute 15.9 percent of the GDP.

Crown Prince Muhammad Bin Salman, deputy premier and minister of defense, said SR200 billion has been allocated over the medium term to stimulate the private sector.

He said, “The State budget statement reflects the government’s keenness to adopt the highest standards of transparency and financial disclosure. “Economic and structural reforms in the national economy are progressing steadily towards achieving the goals of the Vision 2030 by diversifying the economy, achieving economic stability and financial sustainability, as well as stimulating the private sector and working to improve the living standards of citizens. This year’s budget continues to raise the efficiency of public financial management, and to promote economic stability and financial sustainability,” he added.

Allocations

Public spending SR156bn

Economic resources SR131bn

Security & Administrative zone SR103bn

Infrastructure & Transport SR70bn

Municipal Services SR62bn

General Administration SR28bn


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