28/12/2014
In an economic report on the East Chamber
New year's budget official confirmation on the strength of the Saudi economy in the face of challenges
Monitoringspecializedeconomic reportissued by theEastChamberrepresented inthe center ofstudies and informationamong otherpositive indicatorsshown bythe general budgetof the Kingdomfor 2015, whichconfirmsthe strength ofthe Saudieconomy,andstrengthened itslong-termambitionsadopted by theUK, despite the difficultiesand challenges.
The report saidthe general budget ofthe Kingdom ofindicatorsfor the fiscal year1436/1437ecameofficial confirmationeconomicallyforstrength and durability ofthe Saudi economyanda declaration,andtheextent ofits ability tocope with emergencycrises,and to achievebalanced developmentin allfields, thenthe budget(a complement tothe budgets ofthe previousKingdom)adoptnew and diverseprojects,ushers ina new era ofspending onmanyfiles,a complementof energy andinfrastructure projects,and work onthe development of newchannelsare alsocontributingto the national economy.
The reportaddedthat the budgetshowedthe enjoyment ofthe Government ofthe Kingdom ofexperience andwisdomin dealing with thelocal and globaleconomic crises,and demonstratesthe commitment ofthe Government ofthe Kingdom ofrationalset ofstandards andconstants in thepreparation of the generalbudget, whichserves as a«strategic objectives of thebudget1436/1437e», the most importantpriority given toservicesaffectingthe Saudi citizendirectlyhealth, educational and socialsuch as servicesandmunicipalwater and sanitation, roads,andallinfrastructure projects,andcontinued investmentin infrastructureas the bestwaysto attractforeign investment,localization ofSaudi moneymigratoryheads,and dissemination ofdevelopmenteffort andoffbetween the differentregions of the Kingdom,to ensure continuedbalanced regional development,and thelack of focuson the development ofthe areawithout theother, thereby contributing togreater convergencebetween thedevelopmentlevelsinall regions of theUK,as well as thedevelopment ofthe human element,and the development ofnationalmanpowerand increasedemployed,based on the principle"that manis a toolanda veryprocess of development,and work todiversifythe economic baseand sources of incomeof the kingdom,and raisingeconomic growth rates.And reducingthe size ofthe public debt,andtaking into account theinvestmentof availablefinancial resourcesoptimallyto achievecomprehensive and sustainabledevelopmentof the Kingdom's requirements.
The report described thebudgetasan effectiveeconomictoolcontribute to thefuture challengesof the kingdom, from whichthe challengesrelated topopulation growthand the increasingdemand for basic servicesandutilitiesrate,the challenges ofdiversifyingthe economicbase,and the challenges ofthe banking and financialsectorunder theWTO rules, as well asallthe other challengesthat are related toincreasedcompetitionfaced by nationalproducts.Whereis theKingdom's budgetfor the fiscal year1436/1437AHimportant economictoolcontribute toovercoming thesechallenges of the futureand Response,
The report also pointedto a number ofmeasurestaken by the Kingdomto meet thesechallenges, includingits intention toimplement a newand diversein allregions of the Kingdomof development projects,to ensurethe continuation ofbalanced regional development,and to promotethe role of allareas in theeconomic and social development,andnot to focus onthe development ofthe areawithout theother,in order tonarrow thedevelopment gapbetween different regions,and the reduction ofthe populationconcentratedin the cities ofsome areas,to overcome theeffects ofhigh population growthin the Kingdom,wherededicatedsectorof municipal serviceshavingthe Ministry of Municipaland Rural Affairsand the secretariatsand municipalitiesamounted to about40billion riyals,which representsabout 5% ofthe approvedbudgetexpenditures..asthe Kingdomseeksto accommodatepopulation increasesand handling,increasedallocation for healthandeducation services,and providinga high degree ofefficiency and qualityof newandsuccessivegenerations,we find thatwhatwas allocated tothe sectorsof health servicesand social developmentof about160billion riyals,which representsabout 19% ofexpensesthe approvedbudget,while thewhat has beenallocated to thesectorof public education, higher education andworkforce trainingabout217billion riyals,which representsabout 25% ofthe approvedbudgetexpenditures.
In the framework ofkeeping upthe Kingdom ofthe increasing demand forbasic services,andutilitiesrate,allocatedto other economicsectorshas reachedabout60billion riyals,which representsabout 7% ofthe approvedbudgetexpenditure,whilesectorallocationsamounted tobasic equipmentand transportabout63billionReal,which representsabout 7% ofthe approvedbudgetexpenditures.
The report saidthat theKingdomis pursuingeconomic policiesaimed atthe development and diversificationof income sourcesandoptimum utilization ofresources,so as to ensurethe sustainability ofeconomic developmentin the long termand reduce therisks associated withrelyingon a singlesource of income,and is working tocontinue tofurther developthe structure ofthe Saudi economy,and to achievesignificant increases incontributionnon-oil sectorsin the composition ofGDP,and providecareer opportunities,and raise thecompetitivenessof the national economyand nationalproducts..
The report saidthat themonetary policypursued by theKingdomthat helpedinthe provision of adequatefiscal spaceto takestrong actionin the face ofthe effects ofthe global financialcrisissuccessive,and has maintainedthe strengthandsoundness of the bankingsectorwhere,asthoseeconomicmutationstaking place inthe Saudi economyconfirmsthat the financialpolicy of the kingdomis goodand theygoon the right track.Avenueplanshavecontributed tothis remarkablesuperiority..herehighlights the importance ofencouraging the private sectorandstimulateinvestmentinbasic equipmentsectorand managedon a commercial basis, despite theincreasingrole ofthe non-oilsector in the nationaleconomy, especiallythe role ofthe private sector, but theoil sectoris stillisthe main driverof the national economy, contributingmost of theUKrevenuereceiptsinthe balance of payments, so youmusttake advantage of thefinancial surplusesandprotectiveface itandinterest in the developmentand diversification ofnon-oilsourcesof income.
The report saidthat the budgetraise the ceilingaspirationstowards a morecompetitive levelsin the performance ofthe national economy,the figuresrecorded bythe Saudibudget for2015reinforceaspirationsinthe pursuit of sustainabledevelopment,andpaystrategies toraise the ceiling onthe developmentalaspirations,and to expandthe competitiverangein performancein order to achievepositive resultsdesiredin varioussectors of thekingdom.
