Saudi Gazette report

NEOM — Saudi Arabia’s Council of Ministers on Sunday approved the general budget for the fiscal year of 2022, with an estimated total revenues of SR1045 billion and spending of SR955 billion. Custodian of the Two Holy Mosques King Salman chaired the virtual session of the Cabinet that endorsed the budget with a surplus amounting to SR90 billion, the Saudi Press Agency reported.

At the outset of the Cabinet session, King Salman announced the budget in a speech in which he said: “With Allah’s blessing, we announce the budget of the fiscal year 2022 after the Kingdom’s overcoming of the economic repercussions and the exceptional phases of the coronavirus (COVID-19) pandemic. The Kingdom has been continuing its economic and financial reforms in line with the Saudi Vision 2030 by which we aim to place further attention on the security and health of citizens and residents, as well as on human development, the continuation of economic growth and diversity, and financial sustainability.”

The King reiterated the government’s determination to continue implementing economic initiatives and reforms to realize the targets of Saudi Vision 2030 and develop the quality of life with the best utilization of available resources. He also emphasized the government’s keenness on increasing the levels of transparency and efficiency and quality of government expenditure so as to enhance growth and development rates, develop the basic facilities and services for citizens and residents, improve the educational environment and support housing plans.

“The budget stresses keenness on preserving and enhancing our gains, and hence I directed ministers and officials, each within his powers, to effectively commit to implement the items in the budget as well as the programs, development and social projects it includes and following up the health conditions in light of the ongoing pandemic and its repercussions on the health and economic conditions locally and internationally. The government is providing all the necessary allocations for the health sector to increase its efficiency and secure vaccines for all citizens and residents in Kingdom,” the King added.

Then, Secretary General of the Cabinet Prince Abdulrahman Bin Mohammed Bin Ayyaf read out the Royal Decree on the budget, which was signed by the King. As per the Royal Decree, revenues shall be levied according to financial regulations and all to be deposited in the current account of the Ministry of Finance at the Saudi Central Bank. Also, the Minister of Finance is authorized to issue debt instruments, all kinds of Sukuk, borrowing and financing in all its forms.

In his briefing on the budget, Minister of Finance Mohammed Al-Jadaan spoke about the financial outcomes of the current fiscal year and reviewed major features of the budget for the coming year. “The budget is a continuation of the reform process that supports the development of the general financial administration with the government’s commitment to preserving the expenditure ceilings announced earlier in a way that guarantees the financial sustainability at the medium term and a strong financial status that enables the state to face any emergency changes and absorbing any unexpected economic shocks,” he said.

The minister noted that Saudi Arabia’s economy is witnessing progressive growth in the role of economic drivers that support the private sector, where top economic drivers include the effective development contribution of projects and programs that are implemented by the Public Investment Fund and the National Development Fund, in addition to the progress achieved in implementing the National Industrial Development and Logistics Program (NIDLP), National Investment Strategy, Shareek (partner) Program, and Financial Sector Development Program and privatization. He also referred to the remarkable growth in the performance of activities till the third quarter of 2021, which reflects the continuous gradual recovery that was accompanied with high rates of immunization against the COVID-19 virus and contributed to alleviating more precautionary procedures adopted in the Kingdom.