Saudi Arabia is expected to announce its budget for 2020 and the estimated budget for 2021 today, Dec. 15, as the Saudi Cabinet holds its sessions every Tuesday under the chairmanship of King Salman bin Abdulaziz Al Saud.
Minister of Finance Mohammed Al-Jadaan had earlier said that fiscal year 2020 was unusual due to the coronavirus pandemic, adding that lifting the complete lockdown led to the resumption in economic growth with promising preliminary results despite the ongoing concerns.
Saudi Arabia undertook quarterly budget announcements starting 2017, with the aim to enhance the level of transparency and financial control, and improve budget performance reports to comply with the goals of Vision 2030.
In its initial statement, the Ministry of Finance had estimated public revenue in 2021 budget at SAR 846 billion, and expenditures at SAR 990 billion, i.e. an expected deficit of SAR 145 billion.
The ministry expects the public debt to grow from SAR 854 billion, according to 2020 estimates, to SAR 941 billion in 2021, and further to SAR 1.016 trillion in 2022, and SAR 1.029 trillion in 2023, to constitute 31.8% of the GDP at the time.
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Medium-Term Fiscal Estimates (SAR bln) |
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|
|
Actual |
Actual |
Forecast |
Estimates |
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|
Item |
2019 |
9M 2020 |
2020 |
2021 |
2022 |
2023 |
|
Gross Revenue |
927 |
542 |
770 |
846 |
864 |
928 |
|
Gross Expenditure |
1,059 |
726 |
1,068 |
990 |
955 |
941 |
|
Budget Deficit |
(133) |
(184) |
(298) |
(145) |
(91) |
(13) |
|
As a percentage of GDP |
(4.5%) |
-- |
(12.0%) |
(5.1%) |
(3.0%) |
(0.4%) |
|
Public debt |
678 |
848 |
854 |
941 |
1,016 |
1,029 |
|
As a percentage of GDP |
22.8 % |
-- |
34.4 % |
32.9 % |
33.4 % |
31.8 % |
The budget figures for the first nine months of 2020 indicated that revenue amounted to SAR 541.6 billion, expenditures SAR 725.7 billion, and a deficit of SAR 184.1 billion.
On Sept. 30, the Ministry of Finance said it expected that this year's revenue would reach SAR 770 billion while expenditures were projected to be SAR 1,068 billion, with an expected deficit of SAR 298 billion.
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Actual Revenue and Expenditure in Saudi Budget 2020 (SAR bln) |
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|
Period |
Revenue |
Expenditure |
Surplus/deficit |
|
Q1 |
192 |
226 |
(34) |
|
Q2 |
134 |
243 |
(109) |
|
Q3 |
216 |
256 |
(41) |
|
9M |
542 |
726 |
(184) |
|
Q4 |
-- |
-- |
-- |
|
2020 (forecast) |
770 |
1,068 |
(298) |
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