Al-Jadaan: The 2021 budget is expansionary, with the support of 100 billion national funds


Finance Minister Muhammad Al-Jadaan described the 2021 budget as expansionary, based on the support that government funds will provide to it with a value of 100 billion riyals in light of the decline in oil revenues. This came in recent statements to Bloomberg TV, in which he stressed continuing to work to stimulate the economy and support economic growth and diversification, in reference to Vision 2030, which is based on these rules to avoid total dependence on oil, which suffers from successive price fluctuations. Al-Jadaan expected economic growth rates to return to 3.2% next year, ruling out a reconsideration of the value-added tax now unless drastic changes occur in the economy. According to Al-Jadaan, the Ministry of Finance plans to reach nearly the financial balance in 2023 by reducing budget spending annually, to reach 941 billion riyals in 2023. The deficit is then expected to reach less than half a percent. While the Central Bank “SAMA” expected that the reserve would stabilize at 265 billion riyals in 2023. The Kingdom is relying on 3 sources to bridge the budget deficit, which are reserves, local and international bonds, in light of the great confidence in the Saudi economy. The current year deficit is expected to reach 141 billion riyals, compared to 298 billion riyals last year. His Highness the Crown Prince recently announced the Public Investment Fund’s intention to pump 150 billion riyals into the local economy at an annual rate for two years.

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