Saudi reforms bearing fruit. Image: swisshippo/Bigstock
Saudi Q3 non-oil income up 80pc; revenues rise 11pc
RIYADH, November 20, 2017
Saudi Arabia's non-oil revenues increased 80 per cent in the third quarter compared to the same period in 2016, confirming the feasibility of economic reforms, officials said.
Total revenues for the third quarter amounted to SR142.1 billion, an increase of 11 per cent compared to the same period last year. The non-oil revenues amounted to SR47.8 billion, said Mohammed bin Abdullah Al-Jadaan, Minister of Finance,.
The Q3 report affirmed the kingdom's commitment of transparency and financial disclosure, as key factors which are consistent with the Kingdom Vision 2030 and its objectives, said a Saudi Press Agency (SPA) report.
The report highlighted that the Kingdom's government seeks to rationalise spending in order to benefit of its citizens positively. The biggest portion of the government spending was directed to the education sector in the first nine months in 2017.
The figures showed that the kingdom is on the right track to achieve its long-term goal of achieving balanced financial performance.
Total expenditures for the third quarter amounted to SR375.8 billion, an increase of 5 per cent compared to the same period last year, resulting in a deficit of SR 48.7 billion.
The revenues in the first nine months of this year was SR450.1 billion, an increase of 23 per cent compared to the same period.
The expenditure in the first nine months was SR571.6 billion, a minor increase of 0.4 per cent compared to the same period last year. These expenditures represented 64 per cent of the annual total spending.
In this period, the deficit amounted to SR121.5 billion, a decrease of 40 per cent compared to the same period in 2016. Social sectors such as education, health, social development and municipal services accounted for 44 per cent of the third quarter budget expenditures.
"Despite of the current economic challenges, the economic reforms and procedures, included in the Financial Balance Program within the Kingdom Vision 2030, proved its efficiency. They contributed to more non-oil revenues. We are making progress in building a stronger and more diversified economy," Al-Jadaan said.
