Riyadh, Saudi Arabia, 11 May 2017
HE Mohammed Al-Jadaan, Minister of Finance for Saudi Arabia, today announced the Government’s first ever quarterly budget performance update, covering the first three months of 2017. Revealed during a press conference held today at the Ministry’s headquarters in Riyadh, the first quarter budget performance update indicated an increase in revenues, an improvement in public spending efficiency and a deficit reduction, compared to the first quarter of 2016. It also highlighted that basic services provided to citizens are a top priority for Government spending.
The first ever budget update is in keeping with the Government’s commitment to transparency and accountability, and in accordance with the Open Budget Index requirements, as the country moves towards meeting the ambitious targets set out in both its National Transformation Plan and Vision 2030.
The highlights of the Q1 2017 budget update are as follows:
- Revenue was SAR 144.1 billion, an increase of 72% year-on-year
o Non-oil revenue increased slightly (up by 1%) to SAR 32 billion, compared to Q1 2016
o Oil revenue increased by 115% over the same period, to SAR 112 billion, driven by the increase in global oil prices
- Expenditure was SAR 170bn, a reduction of 3% year-on-year
o 23% of budget expenditure was targeted towards education, the biggest single sector spend
o Nearly 46% of budget expenditure was on socially important measures such as education, health and social development and municipal services
- Total expenditure accounts for 19% of the projected annual budget
o The deficit for the Q1 period was SAR 26 billion, a decrease of 71% year-on-year
Speaking at the press conference, HE Mohammed Al-Jadaan, Minister of Finance for Saudi Arabia, said: “I am pleased to announce our first quarterly budget performance update, as part of the Government’s drive to ensure accountability and transparency. Today’s update, complete with financials that were better than initially projected, demonstrates that strong progress is being made towards realising the objective of a balanced budget through an effective fiscal reform program. Our reforms are steering efforts towards generating more
revenue for the Kingdom, whilst also making progress in controlling spending and prioritising the needs of the Saudi people.
"This is another step in our journey to creating an economy that is more stable, more diversified and significantly less impacted by market volatility, especially in the oil sector. Major milestones towards achieving that objective have been delivered, but much remains to be done as we head towards a balanced budget," continued His Excellency.
"We will continue to provide updates on our progress as implement the measures that will deliver a vibrant society, a thriving economy and an ambitious nation," concluded His Excellency.
