The economic researcher and writer, Dr. Jamal Al-Akkad, said that the preliminary statement for the Saudi budget for 2022 was characterized by balanced language and very reassuring estimates.
Al-Akkad added in an interview with “Al-Arabiya”, that Saudi Arabia usually does not get overly optimistic and at the same time is conservative in its numbers, and this is a very important and important matter.
He continued, “It becomes clear that the Saudi financial budget has already begun to get rid of the issue of addiction to oil, as a main source of income.”
He stated that the average price of oil, estimated in the 2022 budget, is $58 a barrel, while almost all indications say that the average will be between $65 and $70 a barrel.
He pointed out that such indications are not considered in estimating the price of a barrel, adding: “The budget has become not dependent on oil income as a main source of revenue…the target numbers are reassuring, even though revenues or expenditures have decreased, but it is viewed positively.”
Al-Akkad pointed out that the initial expectations were that the Kingdom would record a deficit of 141 billion riyals in 2021, but it decreased to 85 billion riyals in the preliminary statement, explaining that the figures are always ready for any emergency that affects whether on the side of revenues or expenditures.
And the economic writer indicated that the Saudi Ministry of Finance is taking a professional scientific approach in order to develop Saudi finance, ensure its safety and sustainability, and improve spending efficiency.
He pointed out that many projects that needed capital expenditures, some of their stages began to end, and this reduces capital spending, in addition to stopping financial waste, as the digital government in Saudi Arabia had a very large contribution to reducing expenditures.