2012-13 Saudi budget extends infrastructure focus

The 2012-13 budget for Saudi Arabia will focus on infrastructure, social and education spending.

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The Saudi Arabian Minister of Finance said on Tuesday that the Kingdom's budget for 2012-13 would be an extension of previous budgets, especially with regard to funding key infrastructure projects.

In an interview with the Saudi First Channel, Dr Ibrahim Al Assaf said that revenue estimates for the next year were higher than the current year.

However, he warned that expenditures were also likely to be higher than the previous year, amounting to around $183.99bn, with the surplus coming to $3.19bn.

Al Assaf added that the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al Saud, had been keeping a close eye on a number of important projects, including the implementation of his order to build 500,000 housing units for Saudi Arabian citizens and the implementation of the Haramain train project.

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Saudi Arabia’s 2011 budget was its biggest ever, with $154bn allotted overall, of which $100bn was earmarked for infrastructure and education.

However, even this was insufficient to contain the burgeoning construction industry, with the government agreeing to supplement its budget by 15%.Al Assaf predicted in May that overspending would be between 10 and 15%, with Saudi Arabian economic growth set to exceed 4% in 2011, up from 3.8% in the previous year.