Saudi Arabia Cuts Expenditure by $133bn

• Saudi Arabia Cuts Expenditure by $133bn

In a bid to contain the effect of coronavirus pandemic on the Kingdom of Saudi Arabia, the world’s largest exporter of crude oil had cut down on public finance by 50 billion Riyals or US$133 billion, representing about 5 percent of the total expenditures approved for the year.

In a statement released by the government, Mohammad Al-Jadaan, the Minister of Finance and Acting Minister of Economy and Planning, explained that Saudi Arabia has perfected measures to ensure the provision of financial requirements necessary to prevent and reduce the direct impact of the consequences of the coronavirus pandemic on the economy.

He stated that in light of “the noticeable development in the public finance management, and existence of the appropriate flexibility to take measures in the face of emergency shocks with a high level of efficiency, the government has approved a partial reduction in some items with the least social and economic impact, and the size of the partial reduction in those items has reached approximately 50 billion riyals (which represents less than 5% of the total expenditures approved in the budget for the year 2020).”

He also “affirmed the strength of the government’s financial position, as it maintained huge government reserves and assets that enable it to deal with emerging challenges, and reduce the impact on its goals in maintaining financial sustainability and economic stability in the medium and long term.”

The Minister of Finance and Acting Minister of Economy and Planning, added that “given the potential continuation or exacerbation of the effects of the spread of the virus and its consequences on the global economy, developments will be re-evaluated, items of expenditures will be reviewed, and appropriate decisions will be taken in a timely manner, and the government will also continue to raise the efficiency of financial and economic performance, enabling it to maintain the financial and economic gains that have been made during the past period.”