Saudi budget focuses on social benefits and economic development

Saudi Arabia’s budget results for Q3 and the first nine months of 2024, released by the Ministry of Finance, show a financial deficit of SR30.2 billion ($8.1 billion) and SR57.9 billion, respectively.

Despite these deficits, revenues improved significantly for both the third quarter and the first nine months of the year.

Q3 revenues totaled SR309 billion, a 20 percent increase from SR258.5 billion in the same period last year.

Revenues for the first nine months reached SR956 billion, up 12 percent from SR854 billion last year.

Non-oil revenues for Q3 amounted to SR118 billion, a 6 percent increase from SR111.5 billion in the same period last year.

The growth in total revenues for Q3 and the first nine months is attributed to improvements in non-oil economic activities and government initiatives to boost the non-oil gross domestic product contribution to the Kingdom’s total GDP.

Oil revenues for Q3 2024 totaled SR190.9 billion, a 30 percent increase from SR147 billion in the same period of 2023. For the nine-month period, oil revenues reached SR585.8 billion, a 16 percent increase from SR505 billion in 2023.

Expenditures for Q3 2024 were SR339 billion, and for the first nine months, they totaled SR1,014 billion, representing increases of 15 percent and 13 percent, respectively, compared to the same periods last year.

The increase in total expenditure is primarily due to higher spending on public services such as health, municipal services and social development, as well as increased operating expenses to support the development of key sectors such as tourism.

The Q3 and nine-month financial results for 2024 confirm that the Saudi government is continuing its expansionary spending focused on economic activities and accelerating the implementation of projects and programs, with the expected social and economic returns aligned with the Kingdom’s Vision 2030.

This also includes spending on various projects aimed at enhancing the quality of life in line with Saudi Vision 2030.

Health and social development services totaled SR201 billion in Q3 2024, representing 94 percent of the approved annual budget for the year.

The government continues to support education in the Kingdom, aligned with Saudi Vision 2030’s goal of improving the quality of education for both citizens and residents.

Spending on the education sector totaled SR151 billion for the first nine months of 2024, representing 77 percent of the approved annual budget for the year.

Due to the Kingdom’s expansion in debt markets to support its economic diversification plans, public debt rose to SR1,157.6 billion by Q3 2024, up from SR1,050.3 billion at the start of the year.

Despite the increase in borrowing, the government maintains a strong financial position, supported by robust reserves.

The Q3 and nine-month financial results for 2024 confirm that the Saudi government is continuing its expansionary spending focused on economic activities and accelerating the implementation of projects and programs, with the expected social and economic returns aligned with the Kingdom’s Vision 2030.

Additionally, the Kingdom’s fiscal policy remains focused on balancing economic growth, maintaining financial sustainability, developing non-oil revenues, improving spending efficiency and increasing private-sector participation in the economy.

• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz