Saudi Arabia's 2023 Budget‎

The Kingdom of Saudi Arabia's 2023 budget is a statement issued by the Ministry of Finance in the Kingdom, detailing the state's revenues, expenditures, and the financial surplus or deficit for that year. It was announced on December 7, 2022, with revenues amounting to SAR1,130 billion, expenditures at SAR1,114 billion, and a surplus of SAR16 billion.

The 2023 budget prioritizes capital expenditure on projects aligned with regional and sectoral strategies that support the objectives of Saudi Vision 2030 and national directions. The Kingdom's government affirmed its commitment to continuing programs and projects with economic and social returns, supporting economic diversification, and empowering the private sector by improving the business environment and removing obstacles to make it more attractive. This aims to boost economic growth rates for the coming year and over the medium term.

The Kingdom approved the transfer of the surplus from general state budget revenues to the general reserve account. The surplus for 2022 was estimated at about 2.6 percent of the gross domestic product (GDP). The achieved surpluses were directed towards strengthening government reserves, supporting national funds, reinforcing the Kingdom’s financial position to enhance its ability to withstand global shocks and crises, and accelerating the implementation of some priority strategic programs and projects.

By the end of the third quarter of 2022, the Kingdom achieved high real GDP growth rates, reaching approximately 10.2 percent. This growth positively impacted various economic activities and non-oil sectors, which recorded growth rates of 5.8 percent. GDP growth was projected to reach 8.5 percent by the end of 2022.

This growth also contributed to the creation of more job opportunities, leading to a reduction in the unemployment rate among citizens to 9.7 percent in the second quarter of 2022, the lowest in the past twenty years. Approximately 2.2 million citizens are employed in the private sector, a historic high. Additionally, women’s economic participation rose from 17.7 percent to 35.6 percent.

The Ministry of Finance projected, alongside the announcement of the general state budget, a real GDP growth rate of 3.1 percent in 2023, according to preliminary estimates. The budget also anticipated a decrease in the inflation rate to 2.1 percent in 2023, expecting it to return to normal levels over the medium term.

The public debt balance was estimated to reach SAR951 billion (equivalent to 24.6 percent of GDP) in 2023, compared to SAR985 billion (equivalent to 24.9 percent of GDP) for 2022.

The government reserves balance was estimated at approximately SAR399 billion by the end of 2023, resulting from the reinforcement of reserves with a portion of the surpluses. This aims to maintain safe levels of government reserves, strengthening the government’s financial position and its capacity to manage external shocks.

The Ministry of Economy and Planning stated that the planned spending levels for 2023 would support economic diversification and enable the private sector to increase its economic contribution, in line with Saudi Vision 2030's goal of raising private sector contribution to 65 percent of GDP.