Saudi Arabia's general budget showed an SR12.39 billion deficit in the first quarter of 2024 compared to the same quarter in 2023, with total public spending coming to approximately SR305.82 billion and receipts coming to SR293.43 billion.
The Ministry of Finance released its first quarter budget performance report on Sunday. It states that the Kingdom's non-oil revenues made up 38% of total revenues, or roughly SR111.51 billion, while its oil revenues made up 62%, or SR181.92 billion. Comparing the overall revenues to the fourth quarter of 2023, there was an 18% decline.
According to the ministry report, non-oil revenues saw a 9% growth in comparison to the same quarter last year, amounting to a financial gain of SR9.17 billion. Meanwhile, oil revenues saw a 1.9 percent increase, translating to an SR3.32 billion increase in value. The ministry stated that debt, rather than government reserves, was used to finance the budget shortfall in the first quarter.
The 2024 state budget forecasted receipts of SR1.17 trillion and expenditures of approximately SR1.25 trillion, resulting in an SR79 billion shortfall for the year 2024.
According to the ministry report, income from taxes on goods and services (value-added tax, selective tax, and expatriate fee) was SR69.9 billion; income, profits, and capital gains (corporate income tax, withholding tax for non-residents), SR6.55 billion; and customs duties, SR6.03 billion, came from taxes on international trade and transactions.
In addition to spending 33 percent of the allocation for municipal services, 28 percent for health and social development, 27 percent for security and administrative regions, 26 percent for education, and 25 percent for basic equipment and transportation, the Ministry of Finance report on the sector spending performance in the first quarter revealed that approximately 39 percent of the approved budget for the public administration sector was spent.
The research disclosed that in the first quarter of 2024, several sectors incurred expenses amounting to less than 25% of the budget. These sectors comprised 18% of the military sector, 20% of the general items sector, and 22% of the economic resources sector.
