The Saudi budget in the third quarter is 256.3 billion riyals, the highest government spending in 2020 to boost growth

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The Saudi general budget revenues during the third quarter of the fiscal year 2020 amounted to about 215.58 billion riyals, expenses of 256.35 billion riyals, and a deficit of 40.77 billion, 62.7 percent less than the levels recorded in the second quarter, which is the height of Corona.
Revenues during the third quarter recorded a growth of 4 percent, compared to the corresponding period of last year, which amounted to about 207.21 billion riyals, and expenditures increased by 7 percent, compared to about 239.38 billion riyals.
The Saudi government increased its actual spending during the third quarter of this year, 7 percent (16.96 billion riyals) to 256.34 billion riyals, compared to 239.37 billion riyals in the same period last year.
According to the monitoring unit of the reports in Al-Eqtisadiah newspaper based on the Ministry of Finance data, the increase in government spending during the third quarter, compared to the previous two quarters of this year coincided with the increase in revenues, although the growth in revenues was less than the growth of expenditures for the period, for the government’s sake. Saudi Arabia to promote economic growth in the country.
Actual spending during the third quarter of this year represents about 24 percent of the total estimated spending in the budget for the full year of 1068 billion riyals.
Saudi Arabia has increased its expenditures for the current year 2020 from what was estimated when the budget was announced at the end of 2019, amounting to 1.020 trillion riyals, with the aim of stimulating the economy in conjunction with the Corona crisis.
Total revenues increased by about 4 percent during the third quarter despite the decline in oil revenues, as the growth was significant for non-oil revenues, and this reflects the government’s keenness to diversify sources of income.
The increase in revenues came despite the decline in oil revenues by about 30 percent to reach 92.58 billion riyals, compared to 131.84 billion riyals. This corresponds to a strong increase in non-oil revenues that amounted to 63 percent to reach about 122.99 billion riyals, compared to about 25.47 billion riyals for the same period of the year. In the past, non-oil revenues thus reach a record level in one quarter.
The government aims to continue to develop and increase the diversity of non-oil revenue sources to ensure the sustainability and stability of revenues, by continuing to implement the initiatives, which were implemented in the last period, allowing the provision of resources that contribute to the implementation of economic transformation plans and financing expenditures of a social dimension.
These initiatives included: implementing the financial compensation for expatriates, and continuing to apply the gradual correction of energy prices until reaching reference prices, in addition to a number of initiatives, which were announced in 2020, aimed at ensuring the sustainability of non-oil revenues in the face of the Covid-19 crisis, including An increase in the value-added tax from 5 percent to 15 percent starting from July 2020, as well as the increase in customs duties for a number of goods, which began to apply on June 20, 2020.
In addition, the Saudi budget recorded during the first nine months of this year, a deficit of about 184.11 billion riyals, after recording revenues amounted to 541.59 billion riyals, as well as expenditures amounted to 725.70 billion riyals, to represent the actual spending during the period about 67.94 percent of the total estimated spending in Budget for the full year.
During the period, revenues declined 24 percent due to the Corona pandemic, which affected second-quarter revenues, as oil revenues declined by 33 percent and about 5 percent for non-oil revenues.
While expenditures declined during the first nine months of this year by about 3 percent on an annual basis, as workers compensation decreased by 1 percent, which is the largest item of expenses, as well as capital expenditures decreased by 26 percent.
Economic Reports Unit

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