Details of the 2025 General Budget
The statement reviewed the figures and details of the 2025 budget, including revenues and expenditures, the most important achievements of the sectors for 2024 and their targets for 2025, and the most prominent financial and economic developments in the Kingdom that confirm the government's continued funding and implementation of the economic transformation programs, initiatives and projects of Saudi Vision 2030 and investing the results achieved from these programs to achieve more achievements while maintaining spending efficiency and financial sustainability in the medium and long term.The statement reviewed the figures and details of the 2025 budget. <On this occasion, His Excellency the Minister of Finance, Mr. Mohammed bin Abdullah Al-Jadaan, extended his thanks and appreciation to the Custodian of the Two Holy Mosques and His Highness the Crown Prince - may God protect them - for their care, wise guidance and careful follow-up to achieve the objectives of the Saudi economy and public finance, maximize economic, social and environmental returns, and optimize the use of the Kingdom's resources and strengths, which reflects on its progress in all fields, stressing that the economic transformation process towards diversity, innovation and investment in promising sectors adopted by the government of the Kingdom will continue, and that the positive results achieved so far confirm the success of the economic reforms.
Budget 2025 targets expansion of strategic spending
He explained that the 2025 budget aims to continue expanding strategic spending on development projects in accordance with sectoral strategies and Vision 2030 programs, continue implementing programs and projects with sustainable economic, social and environmental returns, develop the business environment to enhance its attractiveness, contribute to improving the Kingdom's trade balance, and increase the volume and type of local and foreign investments.Jadaan stressed that the 2025 budget aims to continue expanding strategic spending on development projects in accordance with sectoral strategies and programs of the Kingdom's Vision 2030, and continue implementing programs and projects with sustainable economic, social and environmental returns. <Al-Jadaan emphasized that through this and previous budgets, the government continues to pay attention to the citizen and his basic needs, as spending continues on the education, health and social services sectors, and efforts continue to enhance the quality of government services and facilities and develop infrastructure in various regions of the Kingdom, which contributes to raising the quality of life in them, with a constant focus on improving the social support and subsidies system and increasing its effectiveness. <He explained that the deficit comes within the financial planning of the budget, adding that the Kingdom aims to continue local and international financing operations to cover the expected deficit in the 2025 budget and repay the principal of the outstanding debt during 2025 and in the medium term, and to seize the opportunities available according to the conditions of the financial markets to carry out operations. opportunities available according to financial market conditions to implement alternative government financing operations that would enhance economic growth, such as spending directed at strategies, major projects and programs of the Kingdom's Vision 2030, expecting that the balance of the public debt will amount to about 1,300 billion riyals (equivalent to 29.9% of GDP) for 2025, compared to about 1,199 billion riyals in 2024 (equivalent to 29.3% of GDP). The Minister of Finance emphasized that the 2025 budget aims to preserve the Kingdom's financial position and achieve financial sustainability by maintaining sustainable levels of public debt and significant government reserves to enhance the Kingdom's ability to deal with external shocks, as it is expected that the balance of government reserves at the Saudi Central Bank (SAMA) by the end of 2025 will remain at the same level as in 2024, reaching about 390 billion riyals.
He pointed out that the economic reforms in the Kingdom's economy are expected to maintain the fiscal position and achieve financial sustainability by maintaining sustainable levels of public debt and significant government reserves to enhance the Kingdom's ability to deal with external shocks. He explained that the economic and financial reforms witnessed by the Saudi economy resulted in an improvement in the financial and economic indicators and an important stage in the process of economic diversification and financial stability, explaining that preliminary estimates in 2024 indicate the continued role of non-oil activities in enhancing GDP growth as a result of the continued initiatives and reforms aimed at increasing the contribution of the private sector to GDP and empowering it to become the main engine of economic growth.
Al-Jadaan pointed out that the balance of government reserves at the Saudi Central Bank (SAMA) by the end of 2025 will remain at the same level as in 2024. Al-Jadaan pointed out that the government's continuous efforts to develop the labor market contributed to the decline in the unemployment rate among Saudis to its lowest historical level, reaching 7.1% by the end of the second quarter of 2024, and the female participation rate in the labor market reached 35.4%, exceeding the vision target of 30%, adding that these positive figures come as a result of the achievements of diversifying the economy by promoting promising sectors, empowering the private sector, implementing development projects within Vision 2030, and enabling more categories of society to enter the labor market through new work patterns.
Jadaan praised the government's continuous efforts to develop the labor market and empower the private sector. In this regard, His Excellency praised the pivotal role of the citizen in comprehensive and sustainable economic development, stressing that Saudi men and women have embraced the idea of a “vibrant society” on which the vision is based and have contributed enthusiastically and innovatively to achievements in various fields.
In concluding his statement, His Excellency noted In concluding his statement, Al-Jadaan pointed out that the global economy is improving despite the continued escalating geopolitical conflicts that could create new challenges in the near term. However, the Kingdom - thank God - has maintained its strong financial position and continued to implement its development projects and plans, and has not been significantly affected due to the effective fiscal policies set by the government to ensure its readiness for all local and global economic challenges.
In conclusion, Al-Jadaan pointed out that the global economy is improving despite the continued escalating geopolitical conflicts that could create new challenges in the near term.
