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During its session via video call, headed by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, the Saudi Cabinet approved the general state budget for fiscal year 2021, according to the Saudi Press Agency (SPA).
In the new budget, approved spending amounts to 990 billion riyals and revenue is estimated at 849 billion riyals, with an estimated deficit of 141 billion riyals, representing 4.9% of the size of GDP. .
Crown Prince Prince Mohammed bin Salman, in a speech, stated that “the revenue from the new budget (849 billion riyals) constitutes an increase of 10.3% over the year 2020, and that the objective is to reduce the deficit budget in 2021 (at about 141 billion riyals), roughly equivalent to 4.9% of gross domestic product, down from 298 billion riyals, which is estimated at 12% of GDP estimated for 2020.
The statement from the Ministry of Finance showed that, “real oil production experienced a fall, during the first half of 2020, at a rate of 3.3%, which is lower than local and international expectations for the Kingdom’s economy, and it is the one that declines the least compared to other countries, especially the G20 countries “.
The statement indicated that “preliminary estimates for 2021 indicate real GDP growth of around 3.2%, driven by the assumption that economic activities will continue to recover during the year, and public debt is expected to reach 854,000 million of rials, or 34.3% of GDP at the end of this year. ” “.
The ministry expects debt to reach 937 billion, or 32.7% of GDP, by the end of 2021, and to reach about 1026 billion riyals in 2023, a rate of 31.7%, levels below the ceiling set for public debt at 50%.
