The statistics announced recently by the Finance Ministry have proved the efficiency of the government's plans to mitigate the impact of falling oil prices on the domestic economy, and prepare the Kingdom for the future. They show that Saudi Arabia's budget deficit shrank by a fifth in the second quarter from a year earlier. The Kingdom is seeking to reduce the reliance on oil by increasing non-oil revenues, as part of its transformation program. It is also pursuing a fiscal balance program aimed at restructuring the financial environment, enhancing financial management and managing the government's finance more efficiently within the framework of Saudi Vision 2030. During the second quarter, expenditures were SR 210.4 billion and deficit was SR 46.5 billion, a decrease of 1% and 20% respectively, compared to the same quarter last year. Meanwhile, non-oil revenues jumped to SR 62.9 billion in the second quarter compared to SR 32.1 billion in the first quarter, recording an increase of 96%. As regards to oil revenues, they reached SR 101 billion, an increase of 28% as against the same quarter last year. These indicators will help achieve a balanced budget by 2020, commensurate with the Saudi Vision. Notwithstanding the rationalized spending and controlled budgetary expenditure, the figures indicate the government's efforts to maintain the quality of basic services rendered to citizens as part of the government's spending priorities. Education, health, social development and municipal services accounted for 46% of the first-half budgetary expenditure. This will directly affect citizens and the economic development in general. The statistics highlight the government's efforts to optimize the national economy and the related opportunities. They indicate the continuing strength of the Saudi economy and the success in the methods used to tackle the changing dynamics in the oil markets. The Kingdom's national economy is one of the biggest economies in the Middle East and North Africa. It accounts for 25% of the GDP in the region. All signs indicate that this strong economic performance by the Kingdom will be maintained.
