Recently, news was circulated about the Ministry of Finance of the Kingdom of Saudi Arabia’s expectation of the Saudi budget for 2022, through its introductory statement, where it stated that revenues are expected to reach about 903 billion Saudi riyals, while expenditures are about 955 billion Saudi riyals. The statement is that there is a deficit of 2.7% of the GDP in the current year, and that the deficit will be reduced more than next year in order to continue to focus on reducing the deficit, and many citizens may want to know when the Saudi fiscal year begins, so indicators have increased Research about this news, and in this article we will discuss some information about it.
When does the Saudi fiscal year begin
A deficit of 4.9% was expected by the Kingdom in the budget for the year 2021, but expectations changed and reached 2.7%, and the Kingdom also expected that the deficit would be reduced to 1.6% of GDP in 2022, and it also expected Recording a surplus of 0.8% in 2023.
The chief economist at Abu Dhabi Commercial Bank, Monica Malik, stated that the main message is that the Kingdom continues to focus on the process of controlling spending in order to achieve financial stability, as the main factor in this improvement in the financial situation during this year was the rise in revenues from 849 One billion Saudi riyals to 930 billion riyals, in addition to the increase in oil production and the improvement of its prices.
Kingdom’s expectations for the 2022 budget
Forecasts indicated the growth of the GDP for 2022 by up to 7.5%, driven by the growth of the non-oil GDP as well as the oil output, as the Kingdom expected to raise its share of oil production, starting from May 2022, according to the OPEC agreement, and the improvement in supply chains. global demand, in addition to recovering from global demand.
It was expected that the positive growth of the domestic product would continue with the growth of the non-oil sector, as Mohammed Al-Jadaan, the Saudi Minister of Finance, said. There are many factors that lead to support the rates of non-oil GDP growth.