Budget revenues exceed SR 855 Billion & non-oil revenues rise up to SR 100 billion

With the proximity of declaring its miraculous numbers, Economists to Al Riyadh:

Economic Circles are waiting the issue of State Budget which is expected to be the 2nd biggest budget during the last two decades, after 2008 massive budget in regard to revenues & expenditure. Meanwhile, economists expected the rise of real GDP of present year by 6.5% from the 4% of last year level, government sector growth by 7%, due to the big government expenditure, and private sector growth by 4%.
Some economists declared to Al Riyadh that budget revenues for this year are expected to be, with reservation, SR 855 billion, of which SR 755 billion are oil revenues & SR 100 billion are other sectors revenues. In the same context, they considered that the remaining of foreign reserves in their previous level, which is less than SR two trillion, at the end of 2011, is more probable. They expected, too, that oil prices during the coming season may be around 110 U.S. dollars per barrel, though the price adopted by the Kingdom in 2012 budget is 60 U.S. dollars per barrel.
Dr. Abdul Wahaab Abu Dahesh, the economic advisor, expected that budget revenues of this year is going to reach, with reservation, SR 855 billion, of which SR 755 billion are oil revenues & SR 100 billion are other sectors revenues. Putting into consideration that there is a surplus or balance in the present budget due to the big governmental expenses, ARAMCO investments & building of foreign reserves.
" The kingdom spent more than SR 470 billion outside the scope of the budget this year, represented by the two months salaries for state employees & support of housing programs by SR 250 billion", he added. He considered that the remaining of foreign reserves in their previous level, which is less than SR two trillion, at the end of 2011, is more probable & that there will be no big change in reserves level if compared with the previous budget.
He expected the rise of real GDP by 6.5% from the 4% of last year level, government sector growth by 7%, due to the big government expenditure, and private sector growth by 4%. These numbers and data are compatible with Monetary Fund & government expectations in this regard.
Meanwhile, Abu Dahesh expected that oil revenues of the kingdom to reach the level of SR 950 billion. Yet, a portion from it will be dedicated to ARAMCO budget and another portion will be dedicated to the foreign reserves. These portions are not included in the accounts of the budget.
He mentioned that this year budget will be, "historically", the 2nd budget during the last twenty years after the massive budget of 2008, in regard to revenues and expenditure. He expected, too, that oil prices during the coming season may be around 110 U.S. dollars per barrel, though the price adopted by the Kingdom in 2012 budget is 60 U.S. dollars per barrel.
Dr. Abdulla Ba Ishn, the economic advisor, declared that the rise of oil prices during the last period participated in the rise of budget revenues of this year, though the budget is subjected to high expenses due to the expenses and commitments adopted by the state and considered out of the budget such as some special programs represented by employment programs and previous programs for development of judiciary and education.
He added that the budget of the kingdom is witnessing growth and rise every year since 2003 and that it is expected to see an increase in the expenditure and a rise in reserves level, in spite of expenses increase, due to oil good revenues. He believed that these results will lead to improvement of development programs adopted by the state, development of human abilities and support of transport, including the railway network which is being implemented now.
Ba Ishn said that this year budget is a big motive for continue development programs execution expansion during the coming four or five years. He expected that the budget will focus on expenditure continuation on education, infra structure projects and pushing other resources of economy towards being a good supporter in the medium and long terms, in anticipation of any sudden variation in oil prices which are not affected by supply and demand but by economic and political factors.