saudi arabia reduces budget deficit by 60
Last Updated : GMT 05:21:58
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 05:21:58
Arab Today, arab today

Saudi Arabia reduces budget deficit by 60%

Arab Today, arab today

Arab Today, arab today Saudi Arabia reduces budget deficit by 60%

Mohammed Al-Jadaan, minister of finance.
London - Arab Today

Saudi Arabia reduced its budget deficit by 60 percent to SR49 billion ($13 billion) in the first nine months of the year, official figures published Wednesday show.

The reduction — greater than anticipated in earlier budget forecasts — was the result of a significant growth in both oil and non-oil revenues, the Ministry of Finance said.

This reflects “the effectiveness of economic reforms and fiscal measures targeting fiscal sustainability as well as the effective management of public finances,” the ministry said in its third-quarter budget report.

Government revenues in the first nine months increased by nearly 50 percent to SR663 billion compared to the same period in 2017. Revenues for the third quarter alone hit SR223 billion — an increase of 57 percent quarter-on-quarter — indicating that the rate of growth is increasing.

“The announced Q3 2018 fiscal figures reflect the improved performance of the public finances during this year,” said Mohammed Al-Jadaan, minister of finance.

“While clearly assisted by improvements in the oil price internationally, these figures also show the fruits of the successful implementation of many initiatives to develop non-oil revenues and improve spending efficiency.”

Despite the deficit having fallen, government expenditure increased by 25 percent in the first nine months of the year, reaching SR712 billion.

The increase was due to initiatives such as the Citizen Account social benefits system, living allowances, and expenditure on infrastructure.

Al-Jadaan sounded a note of caution, despite the rosy economic figures, saying that challenges to public finances still exist, and that efforts to move forward with economic reforms must continue.

Saudi Arabia has embarked on an ambitious reform plan known as Vision 2030, spearheaded by Crown Prince Mohammed bin Salman, and which aims to kick the Kingdom’s “addiction” to oil and diversify the economy.

The latest budget figures suggest the reforms are paying off, with non-oil revenues in the first nine months of the year having hit SR211 billion — a year-on-year increase of 48 percent.

Public debt increased from SR443 billion at the end of 2017 to SR549 billion at the end of the third quarter of this year.

Jason Tuvey, senior emerging markets economist at Capital Economics, said that the figures reflect both higher oil prices and the impact of government spending on the non-oil sector.

“The narrowing of the headline budget balance clearly reflects the boost from higher oil prices, but the data provide further evidence that the government has loosened fiscal policy this year which has helped to support stronger growth in the non-oil sector,” Tuvey told Arab News.

“It’s worth noting that the government has significantly underspent its budget for infrastructure so far this year — that could be an area where the authorities try to provide some more stimulus to the economy in 2019.”

Riyadh-based John Sfakianakis, chief economist and strategist at Bilad Capital, said that the drive to diversify the Saudi economy was paying off.

“Public finances are on a continuous path of improvement given the commitment to reform revenues and spending efficiency,” he said.

From: Arabnews

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

saudi arabia reduces budget deficit by 60 saudi arabia reduces budget deficit by 60

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

saudi arabia reduces budget deficit by 60 saudi arabia reduces budget deficit by 60

 



Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today For the Variety of Interior Design Styles

GMT 11:14 2017 Tuesday ,19 December

For the Variety of Interior Design Styles

GMT 08:53 2018 Tuesday ,16 January

China races to prevent environmental disaster

GMT 04:27 2017 Sunday ,24 December

NY iced tea maker sees shares triple

GMT 06:31 2014 Wednesday ,24 December

Ricky Martin to release new album

GMT 10:04 2016 Friday ,30 December

China stockmarkets among world's worst in 2016

GMT 18:20 2016 Saturday ,15 October

One dead as Philippines faces 'most damaging typhoon'

GMT 14:42 2017 Thursday ,30 November

Putin takes fight to hooligans

GMT 09:54 2016 Tuesday ,06 December

China users complain of combustible iPhones

GMT 14:24 2016 Thursday ,20 October

SABIC reports 6.8% fall in Q3 profit

GMT 10:00 2016 Wednesday ,19 October

Nissan's Ghosn to head Mitsubishi Motors

GMT 10:16 2017 Friday ,01 September

Students’ training programme concludes

GMT 23:40 2017 Thursday ,28 September

Weather advisory from NCMS

GMT 05:08 2017 Tuesday ,13 June

Kim guides test of new anti-aircraft weapon
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday