Tuesday 15 October 2024
 
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Saudi eyes $316bn revenue for FY2025 amid fiscal reforms

RIYADH, 13 days ago

Saudi Arabia Ministry of Finance has released its pre-budget statement for fiscal year 2025, projecting total revenues to reach approximately SR1.18 trillion ($315.73 billion), marking a 4% decline from previous forecasts.
 
Preliminary estimates for total expenditures are set at SR1.285 trillion, resulting in a projected budget deficit of SR101 billion, up 38% higher than the previous estimates.
 
This deficit, equivalent to 2.3% of gross domestic product, is considered expected and is anticipated to persist over the medium term due to ongoing expansionary spending policies, reported SPA.
 
These estimates are based on a baseline scenario positioned between low and high and developed to address the challenges and geopolitical risks impacting the global economy.
 
The ministry emphasized that this strategy allows the government to maintain a flexible fiscal framework.
 
The FY 2025 budget aligns with Saudi Vision 2030 by advancing fiscal and economic reforms. The government aims to balance its strong fiscal position, financial reserves, and low public debt while improving spending efficiency and prioritization. 
 
On the outlook, Saudi Finance Minister Mohammed Al Jaadan said: "The pre-budget statement for the fiscal year 2025 confirms that Saudi Arabia’s government will continue to focus its spending on essential services for citizens and residents, as well as on the execution of strategic projects to enhance economic growth and achieve sustainable development."
 
The ministry also released revised estimates for FY 2024, indicating revenues of SR1.24 trillion, a 6 percent increase from previous forecasts.
 
Expenditures are projected to reach SR1.35 trillion, reflecting an 8 percent rise, resulting in a deficit of SR118 billion primarily due to increased spending.
 
Key focuses include accelerating projects that promote sustainable economic growth and adjusting others to stabilize and diversify the economy. The budget prioritizes enhancements in social services, social protection, and regulatory reforms, said the SPA report.
 
Additionally, it emphasizes transformative spending, utilizing sovereign funds, and empowering the private and non-profit sectors. Significant initiatives under Vision 2030 are aimed at developing promising sectors, attracting investment, stimulating local industries, and expanding non-oil exports, it added.

 




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