To gradually implement the economic reform program, which includes increasing energy and electricity prices, Saudi Arabia has announced that achieving fiscal balance which was scheduled for 2020 has been extended to 2023.
In December last year, Saudi Arabia announced the fiscal balance program which aims at complementing the programs that fulfill Vision 2030.
The fiscal balance program includes a number of mechanisms that aim to achieve balance in the Saudi budget during the upcoming years.
According to the Saudi Ministry of Finance estimates, expenditure in the Saudi 2023 budget will be 1134 billion riyals while revenues will reach 1138 billion riyals. This means there will be a surplus worth 4 billion riyals.
The public debt’s percentage compared with the gross domestic product will not exceed 25% during the fiscal balance phase. This is a low percentage compared with other countries.
Economic experts had said that the fiscal balance program and the financial reforms it includes is an “important transformation point” that will help avoid deflation and increase Saudi economic growth at rates which exceed globally expected estimates.