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Crown Prince Mohammed bin Salman
Prince Mohammed bin Salman, Crown Prince, Deputy Prime Minister and Chairman of the Council of Economic and Development Affairs, said that the economic transformation journey adopted by the Kingdom’s government continues to meet the achievements and targets as per the directives of the King Salman bin Abdulaziz Al Saud.
The budget affirmed the results achieved from economic and financial reforms aimed at promoting economic growth and financial sustainability towards a vibrant society, a prosperous economy, and an ambitious nation.
The government is committed in the 2022 budget to the planned spending in the medium term, which was previously announced last year, and expects to achieve budget surplus for the fiscal year 2022. This will be attained through completing work on developing the financial planning process and raising spending efficiency, in addition to developing various sources and more stability of government revenues, which supports the objectives of the Financial Sustainability Program.
"The financial and economic results and indicators confirm that we are progressing positively, as next year's budget comes amid a global climate characterized by great challenges in light of the repercussions of the (COVID-19) pandemic, and great local ambitions, but in a financially disciplined framework that focuses on the efficiency and effectiveness of directing government spending and utilizing available resources to achieve the best return from them, while maintaining financial stability as a fundamental pillar of sustainable growth,” the Crown Prince added.
He also reiterated that the economic recovery, initiatives, and policies of financial control, and the development of public financial management and its efficiency contributed to sustaining the reduction of the budget deficit while maintaining the achievement of the main objectives of the Vision. The 2021 deficit is expected to reach around 2.7% of GDP, compared to 11.2 % in 2020, which was affected by the pandemic.
Meanwhile, fiscal surpluses that may exceed 2.5% of GDP in 2022, these surpluses will be used to increase government reserves to counter the needs posted by the pandemic, strengthen the Kingdom’s financial position, and boost its capabilities to face global shocks and crises.
The economic and structural reforms that have been implemented since the launch of the Kingdom's Vision 2030 have contributed to reducing the negative impacts associated with the pandemic. Until the end of the third quarter of 2021, the Kingdom achieved high rates of real GDP growth for the non-oil sector, which amounted to about 5.4%, driven by a 7% growth in the private sector, as this was reflected in significant growth in many economic activities and sectors, some of which retracted to pre-pandemic levels. This growth was accompanied by a decline in unemployment rates among citizens from 12.6% by the end of last year to 11.3% in the middle of the year due to the increase in job opportunities available to citizens.
The Crown Prince also stressed that the citizen's role today has become pivotal in economic development.
The Crown Prince pointed out that the Kingdom's Vision 2030 focuses on achieving and deepening the impact and involvement of the private sector in the transformation journey to make a qualitative leap in various sectors, as significant progress has been made in implementing several programs that will contribute to development in various fields, diversify the economy, raise the level of quality of life.
He also stressed the important role of the private sector as a major and vital partner in development, and that the government, in addition to the areas of general spending, is implementing various major initiatives that will contribute to strengthening the private sector’s role.
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