Saudi's budget 2020 sees 7.8% lower spending as deficit grows to $50bn
Kingdom’s actual spending in 2019 was $279.5bn (SAR1,048bn), while total actual revenues amounted to $244.5bn (SAR917bn)
Saudi Arabia’s Minister of Finance Mohammed bin Abdullah Al-Jadaan has projected in the kingdom’s General Budget for 2020 that spending will drop to $272bn (SAR1,020bn) next year, which is 7.8% lower that 2019 estimates, while the projected budget deficit continues to climb for the seventh year in a row to $50bn (SAR187bn), up $15bn (SAR56bn) from 2019.
The finance minister briefed the Saudi Arabia Cabinet, highlighting the financial results for the current 2019 fiscal year, and shared details about the budget for FY2020, according to the state-run Saudi Press Agency.
Al-Jadaan said that the budget confirms the government's eagerness to continue implementing major projects, developing infrastructure, enhancing social protection network programs, and boosting services provided to citizens, in accordance with the Kingdom's Vision 2030 to diversify away from oil-based revenues.
Saudi Arabia has announced a budget deficit every year since the oil prices crashed in 2014.
The finance minister has also revealed that the actual spending in 2019 was $279.5bn (SAR1,048bn), while total actual revenues amounted to $244.5bn (SAR917bn), leaving the deficit at $35bn (SAR131bn), which is equivalent to 4.7% of the GDP.
The finance minister also said that the percentage of total public debt at the end of FY2020 will reach 26% of the GDP, in light of the government borrowing policy that balances withdrawals from the State's General Reserves and other sources of financing inside and outside the Kingdom to maintain appropriate levels of local liquidity, in addition to benefits from foreign exchange flows.