Saudi Arabia's 2024 Budget‎

The Kingdom of Saudi Arabia's 2024 Budget is a statement issued by the Ministry of Finance in the Kingdom of Saudi Arabia, detailing the state's revenues, expenditures, and the projected deficit for the fiscal year 2024. It was announced on December 6, 2023. The statement estimated revenues at SAR1,172 billion and approved expenditures at SAR1,251 billion, with a projected deficit of SAR79 billion (representing 1.9 percent of the total gross domestic product (GDP)).

The priorities of the Kingdom's 2024 Budget‎ include raising the quality of life for citizens and residents by developing and improving public services, expanding strategic spending to support and diversify the economic base, continuing to enhance the system of social support and subsidies, and strengthening the government’s financial position. This involves maintaining safe levels of government reserves to enhance the Kingdom’s ability to handle external shocks.

Preliminary projections for the Kingdom's general 2024 budget indicate real GDP growth of 4.4 percent, driven by an increase in non-oil GDP activities. This growth is coupled with ongoing economic reforms and efforts to accelerate economic diversification, which aim to foster sustainable economic growth. Additionally, programs and initiatives designed to stimulate the private sector have contributed to making it a key driver of economic growth, while also creating new and sustainable job opportunities in the labor market.

The Ministry of Finance, in conjunction with the announcement of the state budget, projected real GDP growth of 4.4 percent for 2024, compared to 0.03 percent in the budget of 2023. The budget also forecasted a decrease in the inflation rate for 2024 to 2.2 percent, down from 2.6 percent in the budget for 2023.

The budget statement projected that the total public debt balance would reach approximately SAR1.024 billion (8.24 percent of GDP in 2023) and that the debt level in 2024 would rise to around SAR1.103 billion (9.25 percent of GDP). The growth in debt is expected to remain at sustainable levels over the medium term to meet financing needs.

The Ministry of Finance and the National Debt Management Center have developed an annual borrowing plan based on a medium-term debt strategy. This plan aims to meet the Kingdom's financing needs while ensuring debt sustainability and diversifying funding sources between domestic and international markets. It also seeks to access global debt markets to strengthen the Kingdom's position in international markets, support the growth of the financial sector, and deepen the domestic debt market.

The medium-term debt strategy aims to diversify financing instruments, including issuing bonds, sukuk, and loans. Additionally, it focuses on exploring new markets and financing methods through alternative government financing, such as project financing, infrastructure financing, and export credit agencies.