“Financial Center”: Increasing non-oil revenues to reduce the budget deficit

Economic experts agreed on the importance of Saudi efforts to increase non-oil revenues in order to reduce the budget deficit, govern government decision-making and raise spending efficiency. This came in the meeting organized by the Center for Communication and Financial Knowledge “Mutamim” under the title: “2021 budget targets and their impact on the Kingdom’s economy.” According to estimates, the deficit is expected to remain less than 5% this year compared to 12% last year in light of the increase in non-oil revenues to 360 billion riyals. The chairman of the board of directors of Saudi KPMG – Dr. Abdullah Al-Fawzan, a member of the board of directors of the Saudi Financial Society, Abdullah Al-Rabdi, and a former advisor at the International Monetary Fund – Dr. Raja Al-Marzouki, participated in the virtual meeting, while the writer and economic analyst – Talaat Hafez participated in the meeting.

Abdullah Al-Fawzan pointed to four mechanisms that the government benefited from in the strategies of the Kingdom’s Vision 2030, the first of which is the governance framework in making government decision-making, second the infrastructure for non-oil revenues, and thirdly, the government’s handling of public debt has become more professional, and finally the government’s focus on transforming the Kingdom into a technical environment. . In turn, Abdullah Al-Rabdi emphasized that the reforms that began since the launch of the Kingdom’s Vision 2030 had a positive impact in 2020 in terms of increasing non-oil revenues. He noted that the process of supporting the private sector and raising its participation in the economy. For his part, the former advisor at the International Monetary Fund, Dr. Raja Al-Marzouki, stated that the most important issue for oil-producing countries is how to separate the change of oil revenues from the internal economy.

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