For its part, the rating agency “Moody’s” considered the spending plan referred to by the government in the preliminary statement of the budget as an indicator of a positive development for the credit rating of the Kingdom, as Deputy Chief Analysts at the agency, Alexander Bergey, explained that this confirms the government’s commitment to controlling spending despite the significant upward revisions to the expectations of the Kingdom. Revenue amid rising oil prices.
The preliminary statement of the state’s general budget for the fiscal year 2022 AD, which was announced by the Ministry of Finance last Thursday, in conjunction with the issuance of the semi-annual financial and economic performance report for the year 2021 AD, expected that the total expenditures would amount to about 955 billion riyals during the year 2022 AD, while continuing work to enhance spending efficiency and maintain sustainability. Finance, achieving the goals of the Kingdom’s Vision 2030, implementing economic and financial reforms, as well as the vision’s programs, initiatives and major projects, rearranging priorities based on developments and developments, providing more investment opportunities for development funds and the private sector, in addition to allocating some government programs and services, and infrastructure development projects. infrastructure.
diversification of the economy
The preliminary statement estimated that the gradual return to the Kingdom’s economic recovery would lead to positive developments on the revenue side for 2022 and in the medium term, as it is expected to reach about 903 billion riyals. The direct link to achieving the goals of Vision 2030, which leads to the continued growth of revenues, to reach about 992 billion riyals in the year 2024 AD, also driven by the expectations of local and global economic recovery in the medium term after the effects of the Corona pandemic recede.