The Clap
Saudi Arabia recorded a budget surplus of $27 billion for the first time since 2013, hitting the fiscal balance program’s target, one of the most important economic reform programs within “Vision 2030“.
What
The budget statement for the 2022 fiscal year revealed a surplus of SAR 102 billion, equivalent to 2.6% of GDP. That is SAR 12 billion greater than the budget estimates for the current year and comes after a deficit of SAR 73 billion in 2021.
The rise in oil prices during the current year contributed to a 50% increase YoY in Saudi Arabia’s oil revenues compared to 2021, reaching its highest level since 2014.
So What
According to the budget statement, the surplus will strengthen government reserves and support national funds.
In addition, the surplus could speed up the implementation of some strategic programs and projects for the medium term and be used to repay part of the public debt.
Now What
Saudi Arabia expects its nominal GDP to exceed $1 trillion this year for the first time in its history, according to Finance Minister Mohammed Al-Jadaan.
The Ministry of Finance also expects that the 2023 budget would record a surplus of SAR 16 billion, an increase of 77.7% from what was monitored in the preliminary statement at the end of last September.
