Saudi Arabia is set to spend more next year. The new of the largest budget ever came out when King Salman announced the Budget 2018 on Tuesday. The Kingdom is all set to increase its expenditure to ensure Vision 2030. The increased government expenditure will help lift the economy as it faces low oil prices. The budget focuses not only on oil but many other elements for a better economy. Overall the country will spend 261 billion dollars more which is 978 Billion Riyals. The Kingdom will spend more in 2018 than it has ever in the past. The total public expenditure will be more than 1.1 trillion Saudi Riyals in 2018.
Saudi Arabia will spend 53 Billion Riyals on municipal services. It is 4 billion more than the last year’s budget. It seems that the current budget focuses more on public benefit. The budget also focuses strongly on education, infrastructure, healthcare, housing, transportation, and social development. The Government has announced a monthly household allowance. They will call it the Citizen’s Allowance. It is an initiative which will help the citizens and families with low income. It all aligns with Saudi Arabia’s Vision 2030. The country is all set to spend more on tourism and also on entertainment.
The King said while presenting the budget,
“Improving the living standard of citizens and diversifying the economy are our goal.” He also added that these measures are taken keeping in mind the Vision 2030 and that the Vision2030 has already produced tangible results.
The last year’s Saudi Arabian budget saw a deficit of 230 billion Riyals. It was 8.9 percent of the GDP. This year the deficit is planned to be 195 billion Riyals which is the 7.3 percent of the GDP.
Overall the increase in expenditure will boost the economy. The Saudi Government has plans to spend more this year to ensure not only Oil but other resources get proper attention.
Spending more money on social services such as entertainment will be good for the country’s economy. It ensures not only attraction of locals but also foreigners. It will also open more doors for foreigners. Spending more on tourism is a good decision which will boost the economy. Spending more on health is also a great advantage. The current budget will spend 147 billion Riyals as compared to last year’s 133 Billion Riyals on health. The non-oil revenue is expected to rise from 256 billion to 291 billion Riyals. With all this, the economy is expected to grow 2.7 percent and the non-oil economy to expand 3.7 percent by next year.