Saudi Arabia estimates 2020 budget revenue at SAR 833 bln, expenditure at SAR 1.02 trln

Saudi Arabia's expenditure for the 2020 state budget is expected to reach SAR 1.020 trillion, with estimated revenue of SAR 833 billion, the Ministry of Finance said in its pre-budget statement.

The budget deficit is forecast to reach SAR 187 billion, or 6.6 percent of the Kingdom's gross domestic product (GDP) in 2020.

Total revenue are also projected at SAR 917 billion this year, a rise of 1.2 percent year-on-year, while expenditure is expected to stand at SAR 1.048 trillion, with a projected deficit of SAR 131 billion.

The ratio of non-oil revenues to non-oil GDP is expected to increase to 16 percent by the end of 2019. The budget deficit is expected to continue to decrease in this fiscal year 2019, reaching 4.7 percent of GDP, compared to 5.9 percent last year.

Public debt is forecast to SAR 678 billion this year and SAR 754 billion in 2020.

"The 2020 budget will continue to raise the efficiency of public finance management to maintain fiscal sustainability and maximize return on expenditure. This takes into account the potential impact of domestic and international developments during budget execution," said Saudi Finance Minister Mohammed Al-Jadaan.

"The 2020 budget will also focus its expenditure on Vision Realization Programs which represent the main tool to realize economic transformation objectives, including: housing programs, the quality of life program, privatization program, mega projects, private sector stimulus packages and other major projects across various sectors. These projects will support non-oil GDP growth in 2020 and over the medium term," he added.