Saudi boosts spending in 2019 budget to spur economy growth

By December 20, 2018News

Saudi Arabia plans to increase budget expenditure in 2019 to continue to boost economic growth.

The proposed spending for 2019 is SAR1.106 trillion ($295bn), up 13 percent from this year’s budget of SAR1.030 trillion. The projected revenue for 2019 is SAR978 billion, up 11 percent from the estimates for this year.

The budget deficit, which the government plan to eliminate by 2023, drastically decreased this year to SAR136 billion, well below the original projection of SAR195 billion.

Additionally, Saudi was able to increase non-oil revenue through the introduction of the value-added tax at the start of 2018, decrease in subsidies and the expat levy.

The government estimates the economy grew by 2.3 per cent in 2018 and plans to increase this next year.

As the government continues to support economic activity, the budget remains expansionary for 2019.

The ongoing reforms will improve transparency, increase economic activity and empower the private sector.

Government projections see the non-oil economy growing; creating jobs and improving the unemployment rate of locals.