Dayan Abou Tine

RIYADH: Saudi Arabia on Wednesday approved the state budget for 2024 with revenues projected at SR1.17 trillion ($312.48 billion) and expenditure at SR1.25 trillion, leading to a deficit of SR79 billion.

In its announcement, the Finance Ministry projected the Kingdom’s gross domestic product growth at 4.4 percent in 2024 revised up from the estimated 0.03 percent in 2023.

It forecast the Kingdom’s public debt for the next fiscal to stand at SR1.103 trillion or 25.9 percent of GDP.

According to the ministry, the Kingdom’s budget deficit arises from increased spending to expedite the implementation of key programs vital to the objectives of Saudi Vision 2030.

Despite this, the economy remains robust, supported by substantial fiscal space, strong government reserves, and sustainable debt levels. Moreover, The Kingdom’s strong fiscal position and high sovereign credit rating provide spending flexibility crucial to the country’s commitment to economic development, it said.

Positive indicators include sustained GDP growth, improved non-oil sector performance, a growing labor force, modest inflation rates, and a declining unemployment rate.

The positive outlook for the Saudi economy in 2024 is attributed to favorable developments in the first half of 2023. Revised estimates suggest a robust 4.4 percent growth in real GDP for FY 2024, primarily fueled by non-oil activities.