Asharqia Chamber: The new budget carries many signals that confirm the Kingdom’s seriousness in achieving the 2030 vision
Asharqia Chamber confirmed, through the analytical study issued yesterday, Tuesday, December 10, 2019, which came under the title (Analysis of the overall performance of the Kingdom's budget indicators for the fiscal year 2020 ), that next year’s budget carries many indications of the extent of the wise leadership’s interest in achieving the goals and aspirations of the Vision 2030, and implementing plans National transformation, diversification of income sources, building reserves, attracting foreign investments, expanding and developing infrastructure projects for the Saudi economy, developing the human element, and giving priority to services that directly affect the Saudi citizen.
The study, which came in four main areas, have noted the government's continued efforts in financial control to control the deficit rates of budget since it is estimated that the budget deficit of about 6.4% of GDP in 2020, and that it will continue to decline gradually until promotes stability and financial sustainability in the medium term, it is estimated that the budget deficit of about 2.9% of GDP in 2022.
The study indicated that the new budget reveals the great importance the government attaches to the comprehensive development in its economic and social aspects and the programming that requires spending priorities to direct them to basic services and to improve the quality of life and raise the standard of living for citizens, in addition to completing the development of the sector achievement programs.
It emphasized that government spending estimates indicate continuation in the implementation of social protection programs, such as a citizen account, a high cost of living allowance for both (employees, retirees, social security beneficiaries, and students), and other social security programs that are entitled to the agreement, and with the right to follow through with the agreement. Considering that social spending is one of the most important priorities of government spending to improve the quality of life and raise the standard of living for citizens of families and individuals.
In light of that, the total spending in the budget for the next year 2020 is estimated at about 1.020 billion riyals, down from 2019 in the rate of 2.7%, with the government's continuing efforts to raise the level of the private sector in the field of construction in the sector. Productivity that enhances the targets of economic growth through supporting social development, and raising the degree of discipline and financial planning.
The study pointed out that the revenue development policies and programs aim to find diversified sources to reduce the fluctuation of financial flows due to the instability of oil prices, and to facilitate financial planning and regular financing of various projects and programs.
The study linked between continuing to improve economic performance and completing the implementation of the announced initiatives aimed at developing revenue, and increasing the expected revenues for the fiscal year 2020, which may reach 863 billion riyals in the year 2022, in light of the implementation of many of these revenue initiatives and the enhancement of revenue from the development initiatives.
The study indicated that preliminary estimates of the average range of real GDP growth rates indicate real GDP growth of about 2.3% in 2020, expecting annual growth to continue at the same pace on the same range of investment, in the range of additional investment. Best for current and future generations.
The study concluded that there has been a significant increase in domestic and foreign private sector investments in the non-oil sector and that the government appears to continue in 2020 and over the medium term to facilitate the business climate and investment opportunities in front of the private sector, which witnessed positive growth in the first half of the year, which witnessed positive growth. An average of 2.9% supported by private sector stimulus policies, while private consumption rates continued for the same period in positive growth to reach 4.4% compared to a growth rate of 2.6% for the same period in the previous year. Meh initiatives implemented by the government to support the household sector and the private sector.