After the Council of Ministers approved the state's general budget for the new fiscal year 1437/1438 AH in its session held under the chairmanship of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud at Al Yamamah Palace in Riyadh on Monday, Minister of Culture and Information Adel Al-Turaifi explained in his statement to the Saudi Press Agency the most important budget results reviewed by the Minister of Finance, which are as follows:

Revenues for this year

This year's revenues

Actual revenues at the end of the current fiscal year are expected to reach (608) six hundred and eight billion riyals, a decrease of (15) percent from the budget estimate.

Petroleum revenues account for (73%) percent of it, which is expected to reach (444.5) four hundred and forty-four billion and five hundred million riyals, a decrease of (23%) from the estimate in the previous fiscal year 1435/1436 (2014).

Petroleum revenues are expected to reach (444.5) four hundred and forty-four billion riyals, a decrease of (23%) from the estimate in the previous fiscal year 1435/1436 (2014). The state achieved increases in non-petroleum revenues, as these revenues amounted to (163.5) one hundred and sixty-three billion and five hundred million riyals compared to the previous fiscal year 1435/1436 (2014) (126.8) one hundred and twenty-six billion and eight hundred million riyals, an increase of (36.7) thirty-six billion and seven hundred million riyals, a growth rate equivalent to (29%).

These revenues amounted to (163.5) one hundred and sixty-three billion and five hundred million riyals compared to the previous fiscal year 1435/1436 (2014) (126.8) one hundred and twenty-six billion and eight hundred million riyals.

Expenses

Actual expenditures for the current fiscal year are expected to reach (975) nine hundred and seventy-five billion riyals compared to the budget estimates of (860) eight hundred and sixty billion riyals, an increase of (115) one hundred and fifteen billion riyals, or (13) percent, with an expected deficit of (367) three hundred and sixty-seven billion riyals.

Reasons for the increase in 2015 expenditures

<The increase in expenditures came mainly as a result of the payment of additional salaries to Saudi civil and military state employees, social security beneficiaries and retirees, which amounted to (88) eighty-eight billion riyals, representing (77) percent of the increase in expenditures based on the generous royal orders during the current fiscal year. In addition to what was spent on security and military projects amounting to about (20) twenty billion riyals, which is (17) percent of the increase, and the remaining (7) seven billion was spent on various other projects and expenditures. <The expenditures include the amount of (44) 44 billion riyals for executive works and compensation for the expropriation of real estate for the expansion projects of the Grand Mosque and the Prophet's Mosque.

Expenses charged to previous budget revenues

The expenses do not include those related to additional program projects (including housing, public transportation and infrastructure) funded from the surplus revenues of previous budgets, which are estimated to be disbursed at the end of the current fiscal year (22) 22 billion riyals and are disbursed from the accounts allocated for this purpose at the Saudi Arabian Monetary Agency.

2,650 contracts worth 118 billion riyals

The number of project contracts approved during the current fiscal year by the Ministry, including projects funded from the surplus revenues of previous budgets, amounted to about (2,650) contracts with a total cost of (118) one hundred and eighteen billion riyals.

Current Year 2016 Budget

<The Minister of Finance revealed the general revenues of the budget, which were estimated at about (513.8) billion riyals, while the expenses were set at about (840) billion riyals. The estimated deficit amounted to (326.2) billion riyals. He said that the deficit will be financed according to a plan that takes into account the best available financing options, including local and external borrowing, in a way that does not negatively affect the liquidity of the local banking sector to ensure the growth of financing private sector activities.

183 billion riyals to support the general budget

. Dr. Ibrahim Al-Assaf, Minister of Finance, pointed out in his speech that due to the sharp fluctuations in oil prices in the recent period, a general budget support allocation of SR 183 billion was established to meet the potential shortfall in revenues to give more flexibility to redirect capital and operational spending on existing and new projects according to national development priorities and to meet any developments in spending requirements in accordance with the mechanisms and procedures stipulated by the Royal Decrees regulating this budget.

Royal Decrees regulating this budget.

Government Development Funds

Government development funds (Saudi Industrial Development Fund, Saudi Agricultural Development Fund, Real Estate Development Fund, and Credit and Savings Bank) are expected to continue are expected to continue practicing their tasks in financing various development projects with more than (49.9) forty-nine billion and nine hundred million riyals.

Declining oil price and global economic downturn

<The budget for the next fiscal year 1437/1438 (2016) was adopted in light of the severe decline in oil prices, as the average prices for 2015 were more than 45% lower than their average in 2014, and prices in the last weeks of this year witnessed their lowest levels in eleven years. The adoption of this budget comes against a backdrop of challenging regional and international economic and financial conditions, where global economic growth has declined from previous levels.

Non-oil GDP growth

<The Minister of Finance referred to the developments of the national economy, where the GDP for this year 1436/1437 (2015) is expected to reach (2,450) two thousand four hundred and fifty billion riyals at current prices, a decrease of (13.35) percent compared to the previous fiscal year 1435/1436 (2014), according to the estimates of the General Authority for Statistics (GAS). The GDP of the non-oil sector, both governmental and private, is expected to grow by (8.37) percent, with the government sector expected to grow by (14.57) percent and the private sector by (5.83) percent. The oil sector is expected to witness a decrease in its value by (42.78) percent at current prices.

GDP is expected to rise

At constant 2010 prices, it is expected that:

GDP is expected to increase by (3.35) percent.

GDP is expected to increase by (3.35) percent. <The oil sector will grow by (3.06) percent. <The government sector by (3.34) percent and the private sector by (3.74) percent. <All economic activities constituting the non-oil private sector GDP achieved positive growth. The real growth in communications, transportation and storage is estimated to reach (6.10) percent.

(5.60) percent in construction and building activity.

Wholesale trade and wholesale trade. <In wholesale and retail trade, restaurants and hotels to (3.86) percent. In non-oil manufacturing activity to (3.23) percent.

Financial, insurance, real estate and business services to (2.55) percent.

Financial, insurance, real estate and business services to (2.55) percent.

2.2 % Rising Cost of Living

The cost of living index increased during 1436/1437 (2015) by (2.2) percent compared to 1435/1436 (2014) according to the base year (2007).

Shrinkage Factor

The non-oil private sector GDP deflator, which is one of the most important economic indicators to measure inflation at the level of the economy as a whole, is expected to witness an increase of (2.02) percent in 1436/1437 (2015) compared to the previous year, according to the estimates of the General Authority for Statistics.