Finance Ministry Issued Its 2nd Quarterly Report on Performance of State's Budget

The Ministry of Finance announced that total revenues for the second quarter of the fiscal year 1438/1439H (2017) amounted to SR 163,906 billion, registering a rise of 6% over the same quarter last year, while non-oil revenues reached SR 62,916 billion, and oil revenues for the second quarter were SR 100,9 billion with a growth rate of 28% compared to the same quarter last year, driven by improved oil prices in international markets.

This came during a press conference held on behalf of the Minister of Finance Mohammed bin Abdullah Al-Jadaan by Assistant Minister of Finance for Technical Affairs Hindi Al-Suhaimi revealing figures on the positive developments in the performance of the state's budget for this quarter represented more progress in revenues, improvement of general spending efficiency, and a decrease in fiscal deficit, while maintaining the level of basic services being provided to citizens in the priorities of government spending.

The Assistant Minister for Technical Affairs said that the total expenditures during the second quarter amounted to SR 210,42 billion with a decrease of 1.3% compared to the same quarter last year.

The actual expenditures rate during the second quarter was about 23% from the total budget estimated during the year, while the deficit in the second quarter reached SR 46,517 billion with a decrease of 20% compared to the deficit recorded in the same quarter last year; and the public debt increased from SR 316,580 billion to SR 341,4 billion, driven by successful Sukuk issuances.

The financial indicators for the performance of the general budget of the State for the first half of the fiscal year 1438 / 1439H (2017) are as follows: - Total revenues for the first half amounted to SR 307,982 billion, an increase of 29% compared to the same period last year.

- Total expenditures for the first half amounted to SR 380,71 billion, a decrease of 2% compared to the same period last year.

- The deficit in the first half amounted to SR 72,728 billion, a decrease of 51% compared to the same period last year.

- Social sectors such as education, health, social development and municipal services accounted for 46% of the first half budget expenditures. Commenting on the financial results for the second quarter, Minister of Finance Mohammed Al-Jadaan said, "The financial figures announced for the second quarter reflect the improvement in the performance of the State's general finance, in addition to confirming the progress achieved on a financial performance being characterized by balance in the medium term."

As for the challenges, he said, "Although the economic challenges are still existing, we are confident that we can meet our expectations for the fiscal deficit for 2017.

The second quarterly report shows the effectiveness of economic reforms and measures in the National Transformation Program within the Kingdom's vision 2030.

These reforms have contributed to creating more non-oil revenues and the improvement of spending efficiency leading to a fiscal balance as a strategic objective in the medium term which is positively reflected on the economy of the homeland and the welfare of its citizens."

Minister Al-Jadaan added, "The International Monetary Fund (IMF) praised in its latest report the progress achieved by the Kingdom, boosted its positive expectations for non-oil sector growth, and expressed its confidence in continued successes and high demand for issuance programs of local and international bonds and Sukuk .

He stressed that the Ministry of Finance is committed to transparency and financial disclosure, saying, "We are fully committed to implementing the highest standards of transparency and financial disclosure through publishing periodic data and reports in order to maintain the confidence of all those of interests in the progress we are making in the objectives of the Kingdom's Vision 2030".