Saudi Q2 fiscal results show improvement, says Al-Jadaan

Saudi Arabia's budget results for the second quarter of 2018 show an improvement in state finances, said Finance Minister, Mohammed Al-Jadaan.  

Al-Jadaan's comments came after the Kingdom revealed its budget deficit for the first half of the year, which amounted to SAR 41.7 billion.

"The financial figures announced for the second quarter of this year reflect improvement in the performance of public finances and continued efforts to implement our reform-wise plans,” the minister said.

Al-Jadaan added the ministry is working with other government agencies to boost economic activities and achieve its fiscal balance program.

Figures showed that GDP grew 1.2 percent in Q1 2018, while the non-oil sector saw growth of 1.6 percent.

Economic indicators showed a continued improvement in economic activity in Q2, especially in private sector, as points of sale and cash withdrawals increased during the period, the minister added.

The purchasing manager’s index (PMI) performance has shown progress, in addition to private credit growth, he said.

Saudi Arabia reported a budget deficit of SAR 7.36 billion in Q2 2018, and revenue of SAR 273.59 billion. Expenses reached SAR 280.95 billion for the quarter, a 34 percent increase year-on-year. 

Oil revenues during the second quarter amounted to SAR 184.165 billion, a growth rate of 82 percent compared to the same quarter last year, driven by improved oil prices in the world markets.

Public debt rose from SAR 443.253 billion at the beginning of the year 2018 to SAR 536.954 billion by the end of the second quarter, the finance ministry said.

Meanwhile, total revenues for the first half amounted to SAR 439.851 billion, an increase of 43 percent compared to the same period last year. Total expenses for the first half amounted to SAR 481.542 billion, an increase of 26 percent year-on-year.