INSUBCONTINENT EXCLUSIVE:
Saudi Arabia has revised its fiscal outlook for 2024, projecting a larger budget deficit than initially anticipated
The Ministry of Finance now expects a shortfall of SAR118 billion ($31.47 billion), equivalent to 2.9% of GDP.This figure surpasses the
SAR79 billion ($21.07 billion) deficit forecasted in December 2023
The kingdom has adjusted its revenue projections upward to SAR1.24 trillion ($330.67 billion) for 2024.Government spending estimates have
also increased to SAR1.36 trillion ($362.67 billion)
2024 have been significantly reduced from 4.4% to 0.8%
This downward revision stems from global economic challenges and reduced oil production.The non-oil sector, however, continues to show
promise, growing by 2.8% year-on-year in the first quarter of 2024
Budget Deficit as Economic Reforms Accelerate
(Photo Internet reproduction)The kingdom plans to continue borrowing to finance its budget deficit in the coming years
Saudi Arabia requires oil prices of approximately $96 per barrel to balance its budget.Economic Diversification in Saudi ArabiaLooking
ahead, the government projects budget deficits of 2.3% of GDP in 2025 and 2.9% in 2026
These estimates exceed previous projections, indicating ongoing fiscal challenges.The kingdom remains focused on attracting foreign direct
investment as part of its economic diversification efforts.In the first half of 2024, FDI inflows reached $9.7 billion, maintaining levels
similar to the previous year
create new job opportunities
The Saudi government continues to prioritize investments in key sectors to achieve Vision 2030 objectives.However, this strategy involves
increased spending on specific projects and targeted industries
investments in future growth
Success will depend on various factors, including global oil market conditions and economic diversification efforts.
