Saudi Gazette report

RIYADH — Minister of Finance Mohammed Al Jadaan highlighted the government's ongoing commitment to expanding strategic spending on capital projects.

He emphasized the success of economic and fiscal reforms in promoting comprehensive economic growth and improving fiscal management, with a focus on enhancing services for citizens, residents, and visitors.

Al Jadaan outlined the government's objectives for the 2024 budget, emphasizing an expansion of strategic spending on capital projects in alignment with national strategies, priorities, and Saudi Vision 2030 targets.

The commitment to delivering programs with economic and social returns, supporting economic diversification, and fostering a private sector-friendly environment was reiterated.

Addressing global economic challenges, Al Jadaan noted the unexpected decline in global inflation rates, anticipating positive impacts on the global economy, investment markets, and employment rates, thereby benefiting the Kingdom's economy.

In terms of financing needs, the government plans to continue domestic and international fiscal operations to address the expected 2024 deficit and repay debts due in 2024 and the medium term.

The government aims to leverage market opportunities for additional financing and implement alternative fiscal operations to support economic growth and infrastructure projects.

The public debt balance is projected to reach SR1,103 billion (25.9% of GDP) by the end of 2024, reflecting a year-on-year increase of 1.1%.

Al Jadaan highlighted the positive outcomes of economic and structural reforms, showcasing improved fiscal and economic indicators, economic diversification, and fiscal stability. Preliminary forecasts for FY 2023 indicate a 4.9% growth in non-oil activities.

The minister praised the success of Vision 2030 initiatives, resulting in over 2.3 million citizens employed in the private sector, with women's labor market participation exceeding the target at 35.3%.

Acknowledging the Kingdom's resilience, Al Jadaan emphasized the government's adept handling of geopolitical challenges, contributing to economic and societal stability.

The central role of Saudi Arabia in stabilizing energy markets and proactively supporting global economic growth was underscored.

The Ministry of Finance unveiled the 2024 budget, projecting total expenditures of SR1,251 billion and total revenues of SR1,172 billion.

The estimated deficit of SR79 billion, representing 1.9% of GDP, reaffirms the government's commitment to funding programs aligned with Saudi Vision 2030 while maintaining fiscal sustainability targets in the medium- and long-term.