Saudi Arabia’s Pre Budget Update FY 2022

By: Ashiq Rahman

The Ministry of Finance under the umbrella of Saudi Vision 2030, has issued the Pre-Budget Statement. Economic recovery and revived growth constitute key pillars underpinning fiscal and economic targets for FY 2022 . The governments effort in combating the pandemic have led to minimising the impact, has minimised the threat from new variants and spread in the kingdom.

2021 Vs 2022

Budget 2022 Objectives

1Continuing the implementation of the Kingdom’s economic transformation plans and funding social-related expenses
2Controlling the budget deficit rates to reach levels that guarantee fiscal stability and sustainability
3Raising spending efficiency and enhancing the role of private sector by increasing the participation of the National Funds in capital expenditures, such as the Public Investment Fund (PIF)
42022 Budget continues to ensure fiscal sustainability and strengthening of the Kingdom’s fiscal position amid domestic and international challenges, while continuing to support economic growth
5Diversifying financing sources between local and external, and access global debt markets within well-studied frameworks and foundations
6Continuing spending on mega projects and vision realization programs to support the structural reforms

Financial Projections

YearEstimateProjections
2021202220232024
Total Revenue930903968992
Total Expenditure1015955941951
Surplus/(Deficit)(85)(52)2741
All figures are in Billion Saudi Riyal

A pre-budget announcement is a bold and strong move from the Kingdom as it breaks the conventional routine of once-a-year-budget. It shows steady increase in all segments and is of course a welcoming approach by International investors and rating agencies.

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