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Government Budget

This section will provide an overview of the Kingdom of Saudi Arabia’s most essential budget items by familiarizing you with the budget statements of the Kingdom, presented by the Ministry of Finance, ensuring that all data budgets, government performance indicators, means of government revenue and capital expenditures, in alignment with Vision 2030, are made known to the public through annual budgets and quarterly reports. This section will also underline government expenditures for various sectors and will dive into the development and performance measurements of revenues, expenditures, and growth rates from 2018 – 2021. Additionally, information on the State General Budget, Fiscal Balance Program, and Government Savings and Spending Budget can also be found in this segment.

The economic and financial prospects of the Kingdom along with its prominent developments are presented in each fiscal year through announcing the annual budget estimates and projections, including revenues, expenditures, gross domestic product (GDP), and comparing the deficit and surplus. The Ministry of Finance sets the policies for the Kingdom’s budget with complete transparency within the international standards, announcing its challenges for the upcoming years and keeping pace with the economic changes in raising the GDP and reducing the Kingdom’s dependence on oil products.


The Kingdom of Saudi Arabia’s Budget Statement

The Ministry of Finance presents the Kingdom’s annual budget and prepares the quarterly reports, the citizens reports, the performance reports, etc, which reinforces transparency and allows everyone to read the budget’s data. Moreover, the Government make the Government Performance Indicators available as well as the Budget of each ministry on its website.

Revenues

The Kingdom has oil and non oil revenues, in addition to Zakat and taxes.

Expenditure

The Kingdom spends its budget on Operating Expenses, such as employees compensations, stimulating the private sector, Vision 2030 programs, and social benefits along with the capital expenditure for development and economic growth.

Most Important Indicators


Actual* Expectation** Estimate**

2019 2020 2021 2022 2023
Economic Indicators
Real GDP Growth 0.3% -3.7% 3.2% 3.4% 3.5 %
Nominal GDP (Billion Riyals) 2,974 2,486 2,866 3,042 3,232
Nominal GDP Growth 0.8% -16.4% 15.3% 6.1% 6.3%
Inflation 2.1 % 3.7 % 2.9% 2.0% 2.0%

Summary of Budget 2021


Actual 2018 Actual 2019 Budget 2020 Expectations 2020 Budget 2021 Estimate

2018 2019 2020 2020 2021 2022 2023
Total Revenue 906 927 833 770 849 864 928
Total Expenses 1,079 1,059 1,020 1,068 990 955 941
Budget Deficit -174 -133 -187 -298 -141 -91 -13
As a Percentage of GDP -5.9% -4.5% -6.4% -12.0% -4.9 -3.0 -0.4
Public Debt 560 678 754 854 937 1,013 1,026
As a Percentage of GDP 19.0% 22.8% 26.0% 34.3% 32.7% 33.3% 31.7%
Government Reserves at the Saudi Central Bank 490 470 346 346 280 265 265

Sectrol Spendings

Sector Actual 2019 Budget 2020 Budget 2021 *Annual Change (Budget 2020 – Budget 2021
Public Administration 31 28 34 20%
Military 208 182 175 -3.8%
Security and Administrative Areas 114 102 101 -1.2%
Municipal Services 50 54 51 -5.9%
Education 202 193 186 -3.8%
Health and Social Development 190 167 175 4.6%
Economic Resources 94 98 72 -26.1%
Basic Equipment and Transportation 59 56 46 -18.2%
General Items 113 141 151 7.2%
Total 1059 1020 990 -2.9%

Transparency in Government Spending's

The Kingdoms budget is linked to the realization of Saudi Vision 2030 objectives and goals. The Ministry of Finance is required to highlight the transparency of its preparation and budgets to ensure sustainability to fulfil the nation's aspirations.
The Kingdom's budget is subject to legislative and regulatory scrutiny and is based on the regime.

The Basic Statute of Governance and the annual laws for budget approvals require all government entities to apply the principles of budgetary governance:

  1. Transparent, credible and predictable limits for fiscal policy.
  2. Align with Vision 2030 and other national strategic plans and priorities.
  3. Inclusive and participative debate on budget planning.
  4. Budget documents and data are open, transparent and accessible.
  5. Comprehensive, accurate and reliable account of the public finances.
  6. Actively plan, manage and monitor budget execution.
  7. Performance, evaluation and value for money are integral to the budget process.
  8. Identify, assess and manage prudently longer-term sustainability and other fiscal risks.

To ensure transparency of the government spending's, each government entity must submit quarterly and annual reports to the Ministry of Finance. Following the reports of the government entities, the Ministry of Finance is legally obliged to publish quarterly financial performance reports on the execution of the budget, along with final annual account summaries in the detailed annual reports of expenses and revenues.
Also, the Etimad platform plays a significant role in increasing transparency and raising the efficiency of expenditure for its users, such as government and supervisory entities, contractors, suppliers, vendors, etc. All government entities are obliged to use the platform for procurements of services, goods, works, and payments.

Budget Cycle

Preparation

The budget preparation stages start from the end of December of the last fiscal year to January. By the beginning of February, the main trends of the budget are determined. From mid-March, the budget is subject to initial review and analysis until the end of April. It is then discussed and reviewed from May until the end of August.
The budget preparation is subject to a number of specific rules, namely, commitment to the annual period and submission of estimates, where resources and expenses are general. The budget requires revenues to be equal to expenses taking into account tabulating and analyzing changes. The budget must also determine an expenditure limit in addition to presenting a standard budget that includes all expenditures and revenues in one statement.
Preparing the budget requires the availability of financial and economic competencies combined with knowledge and technical skills, strategic thinking and leadership, a deep understanding of policies and regulations, and advanced financial analysis capabilities.

Approval

Budget approval goes through three stages: starting from initial analysis throughout July, August and September, then final approval within October and November and finally the official release in December.

Implementation

Ministry of Finance adopts four tracks in the implementation of the budget:

  1. To announce the budget in order to disseminate its instructions

  2. To be implemented by a collection of its revenues and commitment to its expenses and provisions
  3. To estimate its quarterly performance
  4. To prepare the final account where entities submit their accounts at the end of the fiscal year. 

Automation programs, such as the digital platform (Etimad), ensure preparation and implementation of the budget expenditure models, budget preparation and implementation system, business intelligence system, data governance and management enhancement program.
Communication with government entities is being carried out through introductory workshops, budget forum and the media plan for the budget, and releasing the activating roles of supporting bodies.
The Etimad platform plays a role in increasing transparency and raising the efficiency of expenditure for its users, such as government and supervisory entities, contractors, suppliers, vendors, etc.

2021 Budget 

Government Expenditure Sectors 2020  2021

The budgets of the Kingdom of Saudi Arabia for this year or for past years can be viewed in detail for all sectors via the Ministry of Finance link here. The Government allocates parts of its Budget for government sectors and summary of those sectors budgets:

Infrastructure and Transportation Sector
First: Information About the Sector
Sector Allocations in Budget 2021 46 Billion Riyals
Prominent Task of the Sector Roads, ports, railways, airports, housing, communications, information technology, postal services, and industrial cities.
Number of Government Agencies Affiliated with the Sector 17 Agencies
Second: Important Projects Completed in 2020
Range Description Numbers
Aviation Developing an Environment for Unmanned Aircrafts in the Kingdom First Stage – 90% complete
Increasing capacity of the fixed cargo services station at King Khalid Airport Up to 600 thousand tons
Ports The launch of a new shipping line to serve the coastal transportation of containers on the coast of the Red Sea. 100%
Progress of port services quality index From the 44th to the 40th position
Housing Signing subsidized financing contracts for beneficiaries. 183 thousand financing contracts
Providing various housing options for Saudi families. Over 320,000 families benefited.
Development of open lands subject to fees Developing an area of 2.2 million square meters to provide more than 4,000 residential land plots.
Providing sufficient housing for the benefit of needy families. Providing more than 11 thousand housing units.
Telecommunications Increase the speed of the Internet in the Kingdom and its progress in the index of the digital infrastructure for communications and information technology. The speed has been increased to 77.5 Mbps and is ranked first in the world in data downloading speed for the fifth generation.
Third: Important Projects Planned for 2021
Range Target Description Numbers
Transport Increasing Road Safety Reducing the costs of deaths and serious injuries resulting from traffic accidents.
Establishing a control center to automatically monitor transportation activities. 24-hour monitoring of violators.
Housing Supporting debtors in paying home finance installments.
Continued financial support for mortgage loans. Funding profit amounts to a maximum of 500,000 SAR.
Telecommunications Fourth Industrial Revolution infrastructure strengthening.
Education Sector
First: Information About the Sector
Sector Allocations of Budget 2021 186 Billion Riyals
Prominent Tasks of the Sector Establishing schools, colleges, and cities, external scholarships, supporting research, development and innovation, establishing university hospitals and supporting sources of knowledge.
Number of Government Agencies Affiliated with the Sector 33 Agencies
Second: Important Projects Completed in 2020
Range Completion Status Completion Status in Numbers
Education Complete education through the Madrasati e-learning platform. Over 5 million students have registered on the platform.
Creation of 23 educational satellite channels" 7.8 thousand satellite courses with around 91 million views.
The launch of scientific headquarters stationed inside schools (STEM) Establishing 72 centers
Establishing the Academy of the General Authority of Zakat and Income 100% complete
Third: Important Projects Planned for 2021
Range Target Description Numbers
Education The launch of the fourth phase of the Custodian of the Two Holy Mosques external scholarship program. Continuation of the scholarship program
Launching the cultural scholarship program in vital educational institutions around the world. Training and Scholarshops for 10,000 citizens
Establishing 3 local academies The National Academy for Artificial Intelligence, the Academy of Administrative Leadership Development, and the Academy of Public Health.
Health and Social Development Sector
First: Information About the Sector
Sector Allocations for Budget 2021 175 Billion Riyals
Prominent Tasks of the Sector This includes health aspects related to legislative services, research and the overall social aspect, involving security, social, cultural, media, sports, and entertainment services, in addition to the management of quality of life programs.
Number of Government Agencies Affiliated with the Sector 17 Agencies
Second: Important Projects Completed in 2020
Range Completion Status Numbers
Health The launch of specialized centers in various regions of the Kingdom. 24 centers for cardiac catheterization services, 19 centers for tumors, 17 centers for obesity, 25 centers for diabetes, and 156 centers for kidneys.
The launch of the Tawakkalna system (Tawakkalna App and Tabaud App) Over 7.4 million users, more than 22,000 infections have been reported by users, and more than 700 gatherings.
Launching the Health Volunteer Platform Over 184,000 volunteers have been registered on the platform. The number of effective volunteers in the field has reached over 30,000,and the number of beneficiaries in all areas of health has reached over 22 million.
Carrying out COVID-19 check-ups in all the Ministry of Health facilities around the Kingdom. Over 9.6 million samples were examined.
Culture Establishing Cultural Commissions Establishing 11 Cultural Commissions
Establishing the King Salman International Complex for Arabic Language 100% Completed
Social Development اCreating social homes to take care of orphans with special needs. 16 Social Homes
Third: Important Projects Planned for 2021
Range Target Description Numbers
Health Rehabilitation of referred hospitals that deal with nuclear and radiological accidents and disasters. 4 Hospitals
Social Development Opening Centers for the Elderly Providing social care services for the elderly in the community.
اCulture The launch of the Kunooz initiative by the Ministry of Information to support local production companies documentation of cultural richness, intellectual creativity, and civilized contribution. Production of 400 short videos and 3 series for children.
Public Administration Sector
First: Information About the Sector
Sector Allocations for Budget 2021 34 Billion Riyals
Prominent Tasks of the Sector Supporting administrative and legislative bodies, the civil service, the Ministry of Foreign Affairs, the courts, the services of Islamic affairs and the field of human rights and the care of the Two Holy Mosques.
Number of Government Agencies Affiliated with the Sector 27 Agencies
Second: Important Projects Completed in 2020
اRange Completion Status Completion Status in Numbers
Human Resources Localization of professions in pharmaceuticals, engineering and dentistry. Percentage not yet determined
Providing more job opportunities for the citizens of the Kingdom Localization of 9 additional business activities
Third: Important Projects Planned for 2021
Range Target Description Numbers
Human Resources Localization of quality and priority jobs in each sector 115,000 jobs
Creating numerous jobs in the industrial industry Reaching 1.3 million jobs by 2020
Military Sector
First: Information About the Sector
Sector Allocations in Budget 2021

175 Billion Riyals

Prominent Tasks of the Sector National Defense, the Royal Guard, raising an developing military capabilities, cities and military bases, hospitals and military medical services, military colleges and universities, localization of military industries, military research.
Number of Government Agencies Affiliated with the Sector 19 Agencies
Second: Important Project Completed in 2020
Range Completion Status Completion Status in Numbers
Military Bases Beginning of the first phase of facility establishments for the King Salman Air Base. The project plan includes two stages to complete.
Military Hospitals The contribution of medical cities to support the health sector when facing repercussions of COVID-19, based on the Kingdom’s efforts. Increasing the capacity of all medical cities, including an increase in capacity of intensive care rooms by 200%.
Military Colleges Implementation of the first phase of relocation and establishment of the King Faisal Air Academy at the new headquarters. The project plan includes two stages for completion.
Military Development Beginning the preparation of the relevant studies to develop the Ministry of the National Guard, in accordance with the National Defense Strategy. The goal is to set a ten year plan to develop within the development plans of the military authorities.
Localization of Military Industries Continuing the implementation of the industrial localization strategy within the Kingdom’s Vision 2030. The goal is aimed at settling 50% of the volume of military spending by 2030.
Third: Important Project Plans for 2021
Range Target Description Numbers
Military Research Research Development related to the military industries. The five year plan has been approved and will start in the fiscal year 2021.
Military Authorities Development Applying the targeted operational model to develop the Ministry of Defense within the ten year plan. Implementation of the operating model by 80%.
Military Bases and Colleges Continuing the implementation of the second phase of establishment and relocation of King Salman Base and King Faisal Air Academy. Second and final stage to complete the project.
Development of Military Capabilities Continuing the development of defense capabilities and systems for military authorities. Includes developments of capabilities in eight military entities.
Security Sector and Administrative Regions
First: Information About the Sector
Sector Allocation of Budget 2021 101 Billion Riyals
Prominent Tasks of the Sector Administrative regions, internal security, border control, combating crime and drugs, combating terrorism and extremism, civil protection, traffic safety, corrections and prison management, passport management, protection of vital installations, technical linkage of citizens, citizen transactions with civil status, and cybersecurity.
Number of Government Agencies Affiliated with the Sector. 30 Agencies
Second: Important Projects Completed in 2020
Range Completion Status Completion Status in Numbers
Building National Capacity Training initiative in cybersecurity at a national level (Cyber Pro). The authority launched the initiative to provide training for national forces, at different levels. The initiative aims to achieve the following goals: - Increasing the number of qualified national forces in cybersecurity. - Developing and increasing the level of skills of national forces working in cybersecurity. - Encouraging recent graduates to work in the fields of cybersecurity. The number of beneficiaries of this initiative in its first and second stages is more than. 2000 trainees, including 1,638 employees in 138 national entities, 428 fresh graduates from 26 Saudi universities and colleges, and graduates of the Custodian of the Two Holy Mosques Program for External Scholarships in the fields of computers and cybersecurity.
Development of Security Headquarters The Custodian of the Two Holy Mosques project to develop security headquarters. Approved in five phases and includes the construction of numerous security headquarters and projects of 14 residential complexes in 5 regions, which include 10,000 housing units, where the beneficiary will receive 6 housing complexes from (2016 – 2022). It also contains 3,800 residential units making up 50% of the total plan for the seven year period. (2016 – 2022).
Medical and Residential Complexes Projects for Medical and Residential Cities Completion rate is 90% of medical and residential projects.
Security Services Activating the unified call center (911) in various regions. Percentage of project completion in different regions = 90%؜
Distinguished Residence Maximizing non-oil revenues and enhancing foreign investment opportunities. Ongoing Project
Third: Important Projects Planned for 2021
Range Target Description Numbers
Security at a National Level Responding to emergency cybersecurity cases. Ongoing project
Civil Affairs and Technical Connection Supplying, installing and operating applications and software to support and develop the infrastructure with technical and security systems, devices, and technology, thus developing an e-portal for civil status services and linking all offices. The project aims to reduce operational costs by percentages ranging between 70% - 95% , leading to effective use of e-services to male and female citizens.
Public Services Introducing Shomoos (National Tourism Information Network), which provides services to link facilities and provide central databases on tourism information with the aim of developing a joint cooperation in business. 50% completed.

Development and performance measurement

                                                                                                                                                                  


Budget 2020

Expectations 2020

Budget 2021

Revenues

Total Revenue

833

770

849

Taxes

200

196

257

Taxes on Income, Profit and Capital Gains

16

16

13

Taxes on Goods and Services

142

141

209

Taxes on International Trade and Transactions

16

16

17

Other Taxes

26

23

18

Other Revenue

633

574

592

Expenses

Total Expenses

1,020

1,068

990

Expenses (Operating Expenses)

847

931

889

Employee Compensation

504

492

491

Goods and Services

140

188

192

Financing Expenses

31

31

37

Advertisements

17

28

22

Grants

1

6

0.4

Social Benefits

69

67

63

Other Expenses

85

119

83

Non-Financial Assets (Capital Expenditures)

173

137

101

Budget Deficit

Budget Deficit

-187

-298

-141

As a Percentage of GDP

-6.4%

-12.0%

-4.9%

Debt and Assets

Debt

26.0%

34.3%

32.7%

Government Reserves at the Saudi Central Bank

346

346

280

For more information about the General Budget and the finical data, please visit this page.

Budget Performance Reports 2017-2020

The Ministry of Finance is legally obliged to publish quarterly financial performance reports on the execution of the budget, along with final annual account summaries in the detailed annual reports of expenses and revenues. The KSA Budget Performance Reports 2017-2020 are available on the following links:

Important links

Relevant Agencies


Last Modified Date: 15/06/2021 - 12:35 PM Saudi Arabia Time
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