The policies implemented by the Kingdom’s government have succeeded in developing and increasing non-oil revenues in recent times; during the third quarter, these revenues amounted to approximately 211 billion riyals, an increase of about 48%, His Excellency the Minister of Finance, Mr. Mohammed bin Abdullah Al-Jadaan, explained this during his participation in the Future Investment Initiative 2018, noting that this is a tremendous and significant achievement, and emphasizing that his ministry serves as the enabler for all ministries in the Kingdom by assisting them in funding their plans to achieve the Kingdom’s Vision 2030.
He made these remarks at the beginning of his participation in a panel discussion as part of the initiative’s program titled “Fiscal Balance,” in which His Highness Sheikh Ahmed bin Mohammed Al Khalifa, Minister of Finance of the Kingdom of Bahrain, also participated. His Excellency explained that the Ministry of Finance managed the fiscal balance programs by working with various ministries to reduce the budget deficit from 16% to 9% last year, He projected a deficit of approximately 7% at the beginning of this year but noted that the year is likely to end with a deficit well below 7%, emphasizing that fiscal balance programs are about sustainability.
The Minister of Finance noted that the Kingdom of Saudi Arabia and the Kingdom of Bahrain have shared trade interests that have been managed for years, emphasizing the importance of maintaining balanced budgets over the medium term and ensuring they remain highly flexible, as achieving this balance can help sustain growth.
His Excellency said: ”There are multiple dimensions to fiscal balance programs, and addressing these individual elements within the economy as a whole is very important. I believe that, first and foremost, it is a matter of effectiveness, efficiency, and predictability.
He added: ”A few weeks ago, we announced the budget statement—the first time this has been done in the Kingdom and the first time in the region—because, first, we are upholding the government’s promise of transparency, and second, we want to be predictable, and we ensure that we announce short- and medium-term projections regarding our revenue figures so that the private sector can plan, review the budget, and base its business plans on it.”
