Saudi 2021 budget reflects ability to balance growth and stability: NCB Capital

Saudi Arabia’s 2021 budget forecast remains consistent with the broader targets of Vision 2030, reflecting the government ability to adopt appropriate policies to balance between growth, stability, and financial sustainability in the medium and long term, NCB Capital said in a new report.

The government remains committed to its plan to rationalize spending with total expenditure projected to decline 7.3% year-on-year (YoY) to SAR 990 billion, given a 26.6% YoY fall in Capex spending.

However, the decline will be more than offset by the Public Investment Fund (PIF) investments of SAR 150 billion annually in upcoming years, the brokerage said.

Saudi Arabia’s revenues for the 2021 state budget are estimated at SAR 849 billion, with forecast expenditures of SAR 990 billion and a deficit of SAR 141 billion.