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‎Govt chose more spending to speed up projects

May 8, 2024
in Business
‎Govt chose more spending to speed up projects
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Saudi govt chose more spending to speed up projects: Al-Jaddan

The Saudi government has chosen to spend more to fast track the implementation of strategies and projects, with the deficit going towards production expenses, Mohammed Al-Jadaan, Minister of Finance, told Al-Eqtisadiah newspaper.

The government understands concerns about the budget deficit and its potential impact on the economy, and managing the budget deficit is one of its top priorities. “We are implementing strategies and policies aimed at promoting sustainable economic growth and managing sustainable debt,” said.
 

The deficit was intended at sustainable ratios to achieve certain economic goals. It was not a negative deficit as in other countries that have to borrow in order to meet essential expenditure.
 

The government has chosen to spend more to accelerate the implementation of strategies and projects, so it has no problem with a limited and non-alarming deficit, as long as the deficit goes towards productive expenses. The government sees no objection to having a deficit financed through debt as long as these sums are directed towards economic activities that generate an economic return exceeding the cost of debt.

Furthermore, the Saudi government has reserves and aims to continue maintaining fiscal space that can withstand financial and economic shocks by maintaining safe levels of government reserves and sustainable levels of public debt, Al-Jadaan added.

Additionally, it is actively working to attract investments, whether domestic or foreign, that can stimulate economic growth and contribute to reducing the budget deficit. By fostering a favorable business environment and implementing sound economic policies, we aim to create opportunities for job creation, entrepreneurship, and innovation.

Saudi Arabia said that the Q1 2024 revenues reached SAR 293.4 billion, while expenditures stood at SAR 305.8 billion, with a budget deficit of SAR 12.4 billion, Argaam reported.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Argaam EN – https://www.argaam.com/en/article/articledetail/id/1725478

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