Global rating agencies hail the statement figures for the 2020 budget

The credit rating agencies “Moody’s” and “Fitch” praised the figures included in the preliminary statement of the Saudi general budget for 2022, which reflects the soundness of the financial policies and structural reforms undertaken by the government in light of the Kingdom’s vision 2030. With a large financial reserve that supports the credit rating, and provides greater flexibility to facilitate public financing needs in light of the instability of oil revenues. The agency estimated that the reserve would rise in the medium term, while it previously expected its stability at a minimum level of 265 billion riyals in 2022-2023 AD.

spending control

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.

spending efficiency

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.

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