The Ministry of Finance has published the second quarter budget performance report of the year 2018, which is available in full on the ministry’s website. The report includes many indicators and key data that reflects the Government's commitment to transparency and fiscal disclosure which strengthens the governance and management of the public finances and progress in achieving the objectives of the fiscal balance program.
The fiscal indicators of the 2018 Q2 budget performance report are as follows:
- Q2 total revenues reached SAR 273.588 billion, an increase of 67% year-on-year.
- Q2 non-oil revenues reached SAR 89.423 billion, an increase of 42% year-on-year.
- Q2 oil revenues reached SAR 184.165 billion, an increase of 82% year-on-year driven by an increase in oil global prices.
- Q2 total expenditures reached SAR 280.950 billion, an increase of 34% year-on-year.
- Q2 deficit reached SAR 7.361 billion, representing a reduction in the deficit because of the growth in revenues.
- Public debt increased from SAR 443.253 billion at the beginning of 2018 to reach SAR 536.954 billion by the end of Q2.
The fiscal indicators of the 2018 H1 budget performance report are as follows:
- H1 total revenues reached SAR 439.851 billion, an increase of 43% year-on-year.
- H1 total expenditures reached SAR 481.542 billion, an increase of 26% year-on-year.
- Q2 actual expenditures account for 49% of the projected annual budget.
- H1 deficit reached SAR 41.690 billion.
- 42% of H1 expenditure was on sectors of social importance such as education, health, social development and municipal services.
Commenting on the Q2 fiscal results, HE Mohammed Al-Jadaan Minister of Finance said:” The fiscal figures announced for the 2018 Q2 reflect the improvement in the performance of public finances, which will lead us to continue our reform plans aimed at economic diversification and achieving fiscal sustainability. " HE assured that the Minis-try is working side by side with other government agencies through continuous coordination of efforts to harmonize policies and measures in support of the Kingdom's macroeconomic stimulus and to achieve the objectives of the fiscal balance program
HE Mohammed Al-Jadaan pointed that the improvement in the fiscal performance was also accompanied by an improvement in economic performance. Real GDP has grown by 1.2% in the first quarter of this year and the non-oil sector has grown by 1.6%.
The Initial economic indicators show a continued improvement in the economic activity in the second quarter of this year especially in the area of private consumption, evidenced by an increase in cash sales and cash withdrawals during the period. Private investment (PMI) performance has also seen good progress. In addition, private credit in the second quarter registered a positive growth for the first time since the first quarter of 2017. These indicators provide a positive view for the continued improvement in GDP performance for the second quarter supported by improved levels of government investment and operating expenditure as well as the recovery of world oil markets.
To view the state budget performance report
click here