Saudi fiscal reforms proved effective despite challenges, says Al-Jadaan

Saudi Arabia’s Q3 budget has shown an improvement in revenues, better utilization of public expenditure, and lower deficit, while maintaining services offered to citizens as a priority, Finance Minister Mohammed Al-Jadaan said in a statement after announcing the state budget for the first nine months of the year.

Despite the present economic challenges, the fiscal reforms and measures outlined in Vision 2030 have proved effective, as they contributed to generating more non-oil revenues, Al-Jadaan said.

"We are making progress in building a more strong and diverse economy,” he added.

Saudi Arabia, the world’s top oil exporter, narrowed its budget deficit by nearly 10 percent YoY to SAR 48.7 billion in Q3 2017.

The Kingdom cut its deficit for the first nine months of the year by 40 percent year-on-year (YoY) to SAR 121.5 billion, with SAR 571.6 billion in expenditures and SAR 450.1 billion in revenue.

Third-quarter revenue climbed 11 percent year-on-year (YoY) to SAR 142.1 billion, while public spending rose 5 percent YoY to SAR 190.9 billion.

Saudi oil revenue reached SAR 94.3 billion during Q3, while non-oil revenue came in at SAR 47.8 billion, up 80 percent YoY.

Almost 44 percent of total expenditure was allocated for key sectors such as education, healthcare and municipal services.

Elsewhere, total public debt reached SAR 375.8 billion in Q3, due to successful sukuk issues.