Preliminary Budget Statement for Fiscal 2024

Introduction

Today, the Treasury released its preliminary budget statement for fiscal 2024 amid expectations that the deficit will reach 1.9%, while expectations point to growth of 4.4%.

Revenue and Expenditure

Finance Minister Mohammed bin Abdullah Al Jadaan said that total revenue in 2024 is expected to reach about 1.172 billion riyals and in 2026 will reach about 1.259 billion riyals, while total expenditure is estimated to reach about 1.251 billion rials in 2026. In fiscal year 2024, the volume will reach about 1.368 billion riyals.

Deficit and GDP Growth

He said the 2024 budget expects a limited deficit of about 1.9% of gross domestic product.

He said preliminary estimates for 2024 indicate real GDP growth of 4.4%, supported by growth in non-oil domestic product.

Structural Reforms and Initiatives

The Saudi Arabian Finance Minister confirmed that the government will continue the process of structural reforms in the financial and economic spheres and will launch a variety of initiatives and policies that will contribute to the development of promising sectors of the economy, increasing investment attractiveness, stimulating industries, and increasing the share of local content and Saudi non-oil exports.

Financial and Economic Risks

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 to combat these risks, pointing out that despite the crises the world is witnessing that have negatively impacted global supply chains, the economy is in a strong financial position, and fiscal space is represented by strong government reserves and sustainable levels of public debt, which can contain crises that may arise in the future.

Source: “SPA”