Saudi Arabia estimates 2021 budget revenue at SAR 846 bln, expenditure at SAR 990 bln

Saudi Arabia's expenditure for the 2021 state budget is expected to reach SAR 990 billion, with estimated revenue of SAR 846 billion, the Ministry of Finance said in its pre-budget statement today, Sept. 30.

The budget deficit is forecast to reach SAR 145 billion, or 5.1%, of the Kingdom's gross domestic product (GDP) in 2021. 

Total revenue is projected at SAR 770 billion this year, while expenditure is expected to stand at SAR 1.068 trillion, with a projected deficit of SAR 298 billion.

The Ministry of Finance also identified the most important financial targets for 2021, and the medium term as well, expecting the public revenues to reach SAR 928 billion in 2023, and the public expenditures will reach SAR 941 billion, with the deficit shrinking to SAR 13 billion.  

Total public debt is expected to grow from SAR 854 billion in 2020, to SAR 941 billion in 2021, SAR 1.016 billion in 2022 and SAR 1.029 billion in 2023, which constitutes 31.8% of the GDP at the time.

The preliminary estimates indicate real GDP growth of 3.2% in FY 2021.

The estimates included in the report are preliminary and have been prepared based on the information available at the time of publishing. The estimates may be updated in the final budget statement, which will be issued at the end of the year, the ministry said.

The evolution of the COVID-19 pandemic may significantly affect the estimates, given the uncertainty surrounding potential domestic and global developments in the period between the issuance of the two documents and the duration of the pandemic.

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