KSA completes fiscal sustainability plan with key achievements
RIYADH, February 6, 2025
Saudi Arabia has completed the executive plan for its Fiscal Sustainability Programme, which is part of Saudi Vision 2030, with several remarkable results, including raising non-oil revenues from SAR186 billion ($50 billion) in 2016 to SAR458 billion ($122.11 billion) in 2023, with a growth rate of about 146%.
The Council of Economic and Development Affairs stated that the timely completion of the plan marks one of the most prominent milestones under the vision.
Launched in 2016, the Fiscal Sustainability Programme (formerly Fiscal Balance Programme), encompasses a series of financial reform measures aimed at ensuring long-term financial and economic sustainability. The programme is designed to pave the way for a more stable fiscal future by establishing a balanced and robust financial system capable of adapting to various changes.
Such adaptability enables the government to continuously enhance fiscal sustainability, utilising initiatives under the program, which have been integrated into the core operations of the Ministry of Finance and various governmental entities.
Hence, the government's fiscal position has become stronger and more resilient than ever, equipping it to face challenges, said a Saudi Press Agency report.
The completion of the executive plan for the programme has improved spending efficiency, boosted revenues, and enhanced financial planning capabilities. These advancements have bolstered the financial position and robustness of the Saudi economy, it said.
Furthermore, the plan has prepared public finances for structural changes and reforms related to the implementation of Vision 2030 programs and initiatives. The programme has played a crucial role in supporting the execution and completion of various projects and objectives outlined in the vision.
The share of non-oil revenues in covering total spending rose from 22% in 2016 to 35% in 2023, achieved through a series of policies and initiatives aimed at realizing the goals of diversifying and growing public revenues.
The programme also contributed to the establishment of several entities, including the Expenditure and Project Efficiency Authority (EXPRO) and Government Projects Authority, which, in collaboration with government entities, contributed to improving spending efficiency and achieving an annual financial impact rate of approximately SAR114 billion, with a total financial impact of SAR687 billion from 2018 to 2023.
The National Debt Management Center played a key role in accessing debt markets and managing the government’s debt portfolio. The Non-Oil Revenue Development Center contributed to diversifying, increasing, and sustaining revenues, reducing reliance on oil revenues.
The programme contributed to developing the state’s public finances by creating a qualitative leap in financial planning through several initiatives related to data analysis and its utilisation, activating electronic solutions, and automating government financial systems (such as the Etimad platform). It paved the way for transitioning to accrual accounting and a unified treasury account for the state, as well as improving the process of preparing the state budget and enhancing transparency. The program improved the efficiency of government support mechanisms through the Citizen’s Account program, which will continue to provide support after the completion of the programme, said the report.
The Council of Economic and Development Affairs stated that the timely completion of the plan marks one of the most prominent milestones under the vision.
Launched in 2016, the Fiscal Sustainability Programme (formerly Fiscal Balance Programme), encompasses a series of financial reform measures aimed at ensuring long-term financial and economic sustainability. The programme is designed to pave the way for a more stable fiscal future by establishing a balanced and robust financial system capable of adapting to various changes.
Such adaptability enables the government to continuously enhance fiscal sustainability, utilising initiatives under the program, which have been integrated into the core operations of the Ministry of Finance and various governmental entities.
Hence, the government's fiscal position has become stronger and more resilient than ever, equipping it to face challenges, said a Saudi Press Agency report.
The completion of the executive plan for the programme has improved spending efficiency, boosted revenues, and enhanced financial planning capabilities. These advancements have bolstered the financial position and robustness of the Saudi economy, it said.
Furthermore, the plan has prepared public finances for structural changes and reforms related to the implementation of Vision 2030 programs and initiatives. The programme has played a crucial role in supporting the execution and completion of various projects and objectives outlined in the vision.
The share of non-oil revenues in covering total spending rose from 22% in 2016 to 35% in 2023, achieved through a series of policies and initiatives aimed at realizing the goals of diversifying and growing public revenues.
The programme also contributed to the establishment of several entities, including the Expenditure and Project Efficiency Authority (EXPRO) and Government Projects Authority, which, in collaboration with government entities, contributed to improving spending efficiency and achieving an annual financial impact rate of approximately SAR114 billion, with a total financial impact of SAR687 billion from 2018 to 2023.
The National Debt Management Center played a key role in accessing debt markets and managing the government’s debt portfolio. The Non-Oil Revenue Development Center contributed to diversifying, increasing, and sustaining revenues, reducing reliance on oil revenues.
The programme contributed to developing the state’s public finances by creating a qualitative leap in financial planning through several initiatives related to data analysis and its utilisation, activating electronic solutions, and automating government financial systems (such as the Etimad platform). It paved the way for transitioning to accrual accounting and a unified treasury account for the state, as well as improving the process of preparing the state budget and enhancing transparency. The program improved the efficiency of government support mechanisms through the Citizen’s Account program, which will continue to provide support after the completion of the programme, said the report.
