Kingdom of Saudi Arabia, Riyadh, 7 May 2018:
His Excellency Mohammed Al Jadaan, Minister of Finance, has announced today the Q1 budget performance report for the fiscal year 2018. The report showed significant growth in non-oil revenues and anticipated expenditure increases on an annual basis, which reflects significant progress in the government fiscal reforms as planned in the Fiscal Balance Program (FBP).
The fiscal indicators of the Q1 2018 Budget Performance Report, were as follow:
- Total revenues for the first quarter of 2018 amounted to SR 166,263 million, an increase of 15% over the same quarter of 2017.
- Non-oil revenues for the Q1 2018 amounted to SR 52,316 million, an increase of 63% over the same period of 2017, which reflects the success of medium-term fiscal plans and efforts to diversify sources of government's income and achieve fiscal sustainability. The government has launched several initiatives aimed at developing revenues over the past two years, including the introduction of value added tax, the expatriates' remuneration and selective taxation, which in turn contributed to the improvement in non-oil revenues. Zakat collection has also significantly improved. In this regard, I would like to thank the private sector for its commitment and cooperation with the Government. The private sector's commitment, transparency, and cooperation in providing the government with its tax and Zakat data, played a major role in increasing the non-oil revenues, and proved once more this sector's importance as one of the pillars in achieving Vision 2030 objectives.
- Oil revenues amounted to SR 113,947 million, an increase of 2% over the same period of 2017, this is due to a switch to quarterly dividends and therefore a large part of the first quarter contribution received in the second quarter, and its impact will be reflected in the second quarterly report.
- Total Q1 2018 expenses amounted to SR 200,592 million, an increase of 18% over the same quarter of the previous year, with the goal of driving economic growth through the distribution of government spending in an optimal manner throughout the fiscal year, and increase the social benefits including the citizen account.
- The Q1 2018 deficit was SR 34,329 million, representing about 18% of the expected annual deficit..
In the light of the fiscal results for the Q1 2018, His Excellency Mohammed Al Jadaan, Minister of Finance, stated that: "the fiscal figures for the first quarter of this year reflect rapid and significant progress in economic reform to help achieve the medium-term Fiscal Balance Program (FBP) goals for 2023, particularly in light of the strong non-oil revenues growth, and the sustained pace of spending efficiency. "
"This year, we are seeking to distribute government spending in a balanced manner throughout the fiscal year and reduce seasonal expedenditure, in order to boost economic growth rates and maximize the benefits," he added.
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