Riyadh, Saudi Arabia, 15 August 2017:
The Ministry of Finance of Saudi Arabia, today announced the Government’s second quarter budget performance update.
The numbers highlight further increases in revenue generation, improved public spending efficiencies and a significant reduction of the fiscal deficit. The figures also illustrate that creating positive impact for citizens remains a top priority for Government spending.
This announcement maintains the Government’s commitment to transparency and accountability in showing progress towards goals as set out in both the National Transformation Plan (NTP) and Vision 2030.
The highlights of the second quarter 2017 update are as follows:
Q2 total revenue was SAR 163.906 billion, an increase of 6% year-on-year
Non-oil revenue for Q2 2017 was SAR 62.916 billion
• Expenditure was SAR 210.42 billion, a reduction of 1.3% year-on-year
o Total Q2 expenditure accounts for 23.% of the projected annual budget
• The deficit for Q2 2017 was SAR 46.517 billion
• Public debt increased from SAR 316.580 billion to SAR 341.4 billion due to successful sukuk issuances
Oil revenue for Q2 2017 was SAR 100.99 billion, an increase of 28% year-on-year
• H1 revenue was SAR307.982 billion, an increase of 29% year-on-year
• H1 2017 expenditure was SAR 380.71 billion, a reduction of 2% year-on-year
o 46% of H1 budget expenditure was on socially important measures such as education, health and social development and municipal services
• The deficit for H1 2017 was SAR 72.728 billion (51% of projected annual deficit)
HE Mohammed Al-Jadaan, Minister of Finance for Saudi Arabia, said: “Today’s [quarterly] update presents clear evidence of progress towards achieving fiscal balance by 2020. Whilst economic challenges remain, we are confident in achieving our fiscal deficit projections for 2017.
The update also underlines how NTP and Vision 2030 reforms are helping to generate more non-oil revenue which will benefit all citizens through job creation and a stronger and more diversified economy. Progress has been recognized by the recent IMF report which confirmed positive projections for Saudi Arabia’s non-oil growth and ongoing program of bond and sukuk issuances.
“Most importantly, we remain fully committed to adhering to increasing levels of transparency, which ensures we maintain the confidence of all our stakeholders regarding the progress we are making in delivering the promise of Vision 2030.”