Thursday, 13 Aug 2020

Custodian of the Two Holy Mosques Chairs Cabinet’s Session, Approving State’s General Budget for Fiscal Year 2020 Riyadh 2

Prince Abdulrahman bin Mohammed bin Ayyaf, Secretary General of the Cabinet, read the Royal Decree regarding the Budget.

Then, the Custodian of the Two Holy Mosques signed the Royal Decree on the Budget.

In a statement to Saudi Press Agency (SPA) following the session, Minister of Media Turki bin Abdullah Al-Shabana said that Minister of Finance Mohammed bin Abdullah Al-Jadaan briefed the Cabinet on the State's General Budget, highlighting the financial results for the current Fiscal Year 2019, and reviewing the main features for the General Budget for the new Fiscal Year 2020.

The Minister of Finance said that the total approved spending is SR 1,020 billion, with estimated revenues of SR 833 billion and an estimated deficit of about SR 187 billion (6.4% of the gross domestic product). The actual spending for 2019 is expected to reach SR 1,048 billion, and the total actual revenue is about SR 917 billion, and a deficit of SR 131 billion (4.7% of the gross domestic product).

The Minister of Finance also said that the budget confirms the government's eagerness to continue implementing major spending plans, major projects and Vision realization programs, developing infrastructure and social protection network programs and developing services provided to citizens, in accordance with the Kingdom's Vision 2030. The 2020 budget continues focusing on health and education sectors, as SR 167 billion has been allocated to health and social development sector, and SR 193 billion to education sector, representing 35% of the total approved spending.

The Minister of Finance also said it is estimated that the percentage of total public debt at the end of the Fiscal Year 2020 will reach 26% of the gross domestic product, in light of the government borrowing policy that balances between the withdrawal from the State's General Reserves and other sources of financing inside and outside the Kingdom to maintain appropriate levels of local liquidity, in addition to benefit from foreign exchange flows. The review of medium-term estimates for real GDP growth rates indicates a growth of about 2.3% in the Fiscal Year 2020, with the pace of growth expected to continue in the medium term.

Source: Saudi Press Agency

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