Today, the Saudi Ministry of Finance announced the Kingdom's budget statement for FY 2024, estimating total expenditures of SAR 1,251 billion, and total revenues of SAR 1,172 billion. These estimates indicate a deficit of SAR 79 billion, which represents about 1.9% of Gross Domestic Product (GDP). The FY 2024 budget confirms that the government will continue funding and supporting the implementation of programs, initiatives, and economic transformation projects in line with Saudi Vision 2030, while maintaining discipline for fiscal sustainability targets in the medium- and long-term.
The Minister of Finance, Mr. Mohammed bin Abdullah AlJadaan, expressed his gratitude and appreciation to the Custodian of the Two Holy Mosques and to His Royal Highness the Crown Prince for their invaluable support and unwavering guidance in achieving the goals to deliver strong economic, social, and environmental returns. These returns can be seen in the progress of the Kingdom on multiple fronts. He said that the economic transformation journey of the Kingdom's government is ongoing, and results to date confirm the success of economic and fiscal reforms. These reforms will continue to enhance comprehensive economic growth and develop fiscal management, focusing on improving the quality of services provided to citizens, residents, and visitors.
The Minister of Finance noted that the government aims to expand strategic spending through the FY 2024 budget on capital projects in line with approved national strategies, national priorities, and Saudi Vision 2030 targets. The government also confirmed its commitment to delivering programs and projects with economic and social returns, and which support economic diversification. The government will further encourage the private sector by improving the business ecosystem and creating a more attractive investment environment with steady economic growth.
In discussing the challenges of the global economy, His Excellency Minister AlJadaan noted that despite the ongoing state of uncertainty, global inflation rates are declining at a faster pace than expected, which will improve global economic performance, stimulate investment markets, and maintain low unemployment rates, resulting in a positive impact on the Kingdom's economy.
To meet financing needs, His Excellency said that the government will continue domestic and international fiscal operations to bridge the expected 2024 deficit and repay debt due during 2024 and in the medium-term. The government also aims to take advantage of available market opportunities to provide additional financing to repay debt obligations in the coming years. Additionally, the government will leverage market opportunities to implement alternative government fiscal operations that enhance economic growth, such as financing development and infrastructure projects. It is expected that the public debt balance will reach SAR 1,103 billion (25.9% of GDP) by the end of 2024, compared to SAR 1,024 billion (24.8% of the GDP) in 2023, a 1.1% year-on-year increase.
He reiterated that the results of the economic and structural reforms that the Kingdom is witnessing have improved fiscal and economic indicators, driving economic diversification and fiscal stability. He also noted that preliminary forecasts for FY 2023 clearly indicate the growth of non-oil activities , which are expected to grow by 4.9%. His Excellency also highlighted that the Kingdom's continuous efforts to improve the labor market have contributed to localizing quality jobs and providing sustainable employment. This has led to approximately 1.122 million new jobs added by the private sector to the Saudi economy by the end of the third quarter of 2023, leading to a decrease in unemployment rates among Saudi citizens to 8.3%.
The Minister added that this decrease reflected the continuous and accelerated growth in the private sector since the launch of Saudi Vision 2030, which has provided an improved environment for the sector through the successful introduction of various strategic plans and supportive initiatives targeting small- and medium-sized enterprises. He highlighted that more than 2.3 million citizens are employed in the sector, the highest number ever recorded. Additionally, women's participation in the labor market reached 35.3%, exceeding the Saudi Vision 2030 target. His Excellency praised the pivotal role of Saudi citizens in supporting comprehensive and sustainable economic development as the foundation of our Kingdom's progress and the driving force for development. He mentioned that the government continues its social protection system programs with periodic reviews, to improve them and ensure they reach the targeted groups. Additionally, the government is committed to enhancing the quality of services, government facilities, and developing infrastructure in across the Kingdom, which contributes to improving the quality of life for citizens and residents.
His Excellency highlighted that the government's swift and sure handling of geopolitical challenges, mitigating economic and societal repercussions, stands as a testament to the resilience and adaptability of the Kingdom's economy. Additionally, emphasis was placed on the Kingdom's central role in stabilizing energy markets and its proactive stance in bolstering both local and global economic growth and stability.