Saudi Arabia’s 2020 budget progressive: KPMG

Saudi Arabia’s recently announced general budget 2020 is progressive and focuses on balancing fiscal stability and economic growth despite oil market volatility this fiscal year, said professional services firm KPMG Al Fozan & Partners.

Saudi Arabia’s recently announced general budget 2020 is progressive and focuses on balancing fiscal stability and economic growth despite oil market volatility this fiscal year, according to a budget review released by KPMG Al Fozan & Partners, the leading provider of audit, tax and advisory services in Saudi Arabia.

The latest budget continues to support the Kingdom’s diversification efforts, transitioning the economy away from its dependency on the oil sector by developing the private sector and enhancing its contribution to achieving Vision 2030 goals and targets.

Budgeted revenue is expected to reach SR833 billion ($222 billion) in 2020, 62 per cent of which is driven mainly by oil revenue, while budgeted expenditure is projected at SR1,020 billion. Fiscal deficit stands at SR187 billion (6.4 per cent of estimated 2020 GDP) compared with SR131 billion (4.7 per cent of GDP) in 2019.

Public debt is anticipated at SR754 billion, 26 per cent of the estimated GDP in 2020, growing 11.2 per cent compared to the previous year.