Saudi budget backs public services, economic growth 
The recent budget report released by the Saudi Ministry of Finance for Q1 2024 has revealed the Saudi government’s insistence on supporting the national economy and improving public services.
The figures have also revealed the government’s dedication to enhancing non-oil revenues in line with Saudi Vision 2030.
Non-oil revenues amounted to SR111.5 billion ($29.7 billion), marking a 9 percent increase compared to the same period in 2023, when they amounted to SR102.3 billion.
Oil revenues in Q1 2024 amounted to SR181.9 billion, reflecting a 2 percent increase compared to the first quarter of 2023, when they reached SR178.6 billion.
Total expenses in Q1 2024 amounted to SR305.8 billion, reflecting an 8 percent increase compared to the same period in 2023, when they totaled SR283.9 billion. This increase is attributed to the government’s efforts to support public social services for beneficiaries. Additionally, the government continues enhancing public services provided to Saudi nationals and expats living in the Kingdom.
The budget continues to support several projects, strategic initiatives, and programs that bolster economic and financial restructuring, leading to economic prosperity and diversification of the Kingdom’s gross domestic product.
Due to the government’s insistence on enhancing public services and supporting strategic projects, the budget recorded a deficit of SR12.4 billion in Q1 2024, compared to SR2.9 billion in Q1 2023.
The government is focusing its efforts on achieving financial sustainability in both the medium and long terms, ensuring that the economy is resilient enough to face any global economic risks and challenges.
Public debt amounted to SR1,115.8 billion in Q1 2024, compared to an opening balance at the beginning of the year of SR1,050 billion, representing an increase of 6 percent.
It is noteworthy that SR665 billion constitutes national debt, while SR450.8 billion is external debt.
Also, it is worth noting that the public debt is well covered by a good percentage of government reserves, enabling the government to confront any financial and economic shocks.
I believe that despite the financial deficit in Q1 2024, the Saudi government continues to pursue its economic and financial reforms in line with Vision 2030.
Also, the government is focusing its efforts on achieving financial sustainability in both the medium and long terms, ensuring that the economy is resilient enough to face any global economic risks and challenges.
The Saudi government is insisting on supporting public health and social development programs, including municipal services, because these sectors improve public quality of life.
The Kingdom’s fiscal policy will continue to function to achieve a balance between the goals of economic growth, maintaining financial sustainability and developing non-oil revenues. Additionally, it aims to raise the efficiency of spending and increase the participation of the private sector in the economy.
Finally, improvements in tax management and collection procedures have led to a greater increase in non-oil revenues in Q1 2024 compared to the increase in oil revenues, in percentage terms. This proves that the government has raised non-oil revenues at the expense of oil revenues, in line with Vision 2030.
• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
