Saudi Arabia needs adequate fiscal buffer for shocks: Al-Jadaan

07/12/2023 Argaam
Mohammed Al-Jadaan, Minister of Finance

Mohammed Al-Jadaan, Minister of Finance


Mohammed Al-Jadaan, Minister of Finance, emphasized Saudi Arabia’s need for adequate fiscal reserves at the Saudi Central Bank (SAMA) to face external shocks, stressing that a portion of these reserves should remain intact.

 

In the 2024 Budget Forum, Al-Jadaan noted the analysis of Saudi Arabia's borrowing needs until 2030, covering both global and local markets.

 

He highlighted the need to avoid competing with the private sector for local funding and mentioned setting a debt ceiling to maintain financial sustainability.

 

The minister discussed the extensive review over the past two years of all sectoral and regional strategies and projects to optimize funding and execution for maximum economic return.

 

He stated that the prioritization committee is finalizing the projects to be postponed beyond 2030, with some projects extended and others' funding reduced for optimal financing and implementation.

 

Al-Jadaan explained that extending certain projects is economically beneficial, preventing inflation and price rises due to rapid project execution.

 

He clarified that spending efficiency means optimal resource use for the highest return, not just reducing expenditure.

 

He disclosed that the Efficiency of Expenditure Authority, along with government bodies, saved nearly SAR 225 billion, redirected into other programs and strategies.

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