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Mohammed Al-Jadaan gives briefing on the 2024 budget
Saudi Arabia's gross domestic product has grown by about 65% since the launch of the Kingdom’s Vision 2030, said Minister of Finance Mohammed Al-Jadaan, adding that GDP growth by 0.03% this year came as a result of the Kingdom’s decision to reduce oil production.
The state’s budget for 2024 focuses on increasing non-oil domestic product, said Al-Jadaan, during the government press conference held to discuss the budget. He indicated that non-oil revenues have strengthened the Kingdom’s economy.
Revenues for the year 2024 amounted to SAR 1,172 billion, which are considered conservative, said the minister, expecting higher revenues to be achieved. He also said that the expected deficit is not considered a concern as long as it goes towards productive expenses and capital expenditures that strengthen the economy.
He stated that the Kingdom managed to curb inflation rate to some extent, reaching 2.6% during the year, which will begin to decline until it reaches 1.9% in 2026.
Al-Jadaan highlighted that the Saudi economy created more than 1.1 million new jobs, including more than 130,000 jobs for Saudis in 2023, which shows that the Kingdom witnessed robust economic activity during the year.
With regard to changing the value-added tax, Al-Jadaan said that there are economic policies that do not change, such as diversifying the economy and encouraging the private sector, while there are other financial policies that are liable for change with varying economic and financial conditions, including tax policies, and therefore the changes will be announced at the right time, as there is currently a deficit.
He also indicated that the infrastructure and projects that will be built in the Kingdom, especially in Riyadh, will be sufficient to host Expo 2030, noting that Al-Qiddiya, which will be about half an hour away from Expo, will have an area of more than 10 Expos.
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