The 2020 budget indicates total expenditures of SAR 1,020 billion, and SAR 833 
billion of projected revenues. The 2020 budget deficit is projected to amount 
SAR 187 billion (6.4% of GDP). For FY 2019, it is expected that the actual 
expenditures will reach SAR 1,048 billion and total actual revenues are 
expected to reach SAR 917 billion. The deficit is expected to amount to SAR 131 
billion (4.7% of estimated 2019 GDP).

2019 saw the country improving its business environment, as recognized in the 
World Bank Ease of Doing Business Report 2020 where the Kingdom was the top 
reformer globally and moved 30 places up to 62nd. 62% of the three hundred 
planned reforms in this area were completed, including a new government tenders 
and procurement law, new commercial courts, a new competition law and planned 
public private partnership laws.

The 2020 Annual Budget is focused on Vision 2030 projects, continued private 
sector stimulus, mega project implementation and Vision Realization Programs. 
This will result in greatly improved efficiency and effectiveness, with many 
large CAPEX infrastructure projects ending and public private partnership 
projects increasing, reducing demands on government spending.

The government will continue to enhance the efficiency of expenditure, both for 
operational and capital expenditure. These efforts seek to increase the quality 
of public services, and their economic and social returns throughout the medium 
term. The budget continues its focus on the education and health sectors. The 
budget allocation for the health sector reaches SAR 167 billion, whereas SAR 
193 billion is allocated for the education sector, amounting to a combined 35% 
of the approved total spending.

His Excellency Mohammed Al-Jadaan, Minister of Finance, said: "The budget 
demonstrates the government's keenness to enhance and sustain economic growth 
while ensuring fiscal sustainability. We have adopted economic policies that 
target the growth of non-oil GDP, improving the quality of services provided to 
our citizens, and raising the efficiency and effectiveness of government 
spending, especially social spending. Simultaneously, the government continues 
its steadfast commitment to empowering the private sector's role in the 
economy, job creation and diversification of investment under the umbrella of 
Saudi Vision 2030 objectives."

His Excellency also noted that the 2020 Budget Statement shows notable growth 
in various economic sectors during 2019, including a growth rate in private 
non-oil GDP of 3.4% during the second quarter of the year. He also emphasized 
that the government will continue the implementation of its strategic 
objectives, aimed at economic diversification, by establishing a suitable 
environment for investment in promising sectors while providing a stable 
economic framework.

The medium-term revision of real GDP growth rate projections has indicated real 
GDP growth of 2.3% in 2020. Growth is expected to continue at the same pace 
over the medium term.

His Excellency reiterated that the twenty-two private sector support 
initiatives targeting strategic sectors are bearing fruit in second quarter 
sector growth numbers. The sector of wholesale and retail trade, restaurants 
and hotels grew by 5.8%. The sector of transportation, storage and 
communications, which includes logistics and technical services, recorded a 
growth rate of 6.4%. In the sector of financial services, insurance and real 
estate, the growth rate was 5.4%.  The sector of community, social & personal 
services sector including entertainment & sport, recorded growth of 7.4%. In 
addition, the construction sector has recorded a growth rate of 4.9%.

His Excellency concluded that the budget statement reflects the government's 
efforts to reinforce transparency and improve efficiency in expenditure and 
fiscal performance while simultaneously focusing on the construction and 
delivery of the budget to achieve Vision 2030 goals.

Source: Ministry of Finance Saudi Arabia