The latest quarterly budget performance report by Saudi Arabia’s Ministry of Finance showed a continued improvement in Saudi Arabia’s fiscal position, according to a recently released report by the Riyadh-based Jadwa Investment.
“Due to an increase in government revenues, by 6 percent, and a drop in expenses by 1 percent, year-on-year, the fiscal deficit declined to SR46.5 billion ( ) in Q2 2017, compared to SR58 billion ( ) a year ago. Continued yearly improvements in oil revenue helped lift overall government revenue in Q2 2017. At the same time, total non-oil revenue decreased by 17 percent year-on-year, with all but one segment -‘Taxes on Income’, showing yearly declines” Jadwa said.
Meanwhile, total government expenses dropped by 1 percent year-on-year in Q2 2017. This was largely a result of a drop in capital expenditure, which fell by 12 percent year-on-year, whereas current expenditure rose by 1 percent year-on-year.