JEDDAH, 26 October 2004 — The SR41 billion welfare allocation made by Crown Prince Abdullah from this year’s budget surplus will be spent on development projects from January, press reports said quoting Finance Minister Dr. Ibrahim Al-Assaf.
The minister confirmed that funds worth SR41 billion have been set aside in the 2005 budget for all the projects ordered by the crown prince while making the welfare allocation in early September.
“The new welfare allocation will reflect positively on the economy and will give the Kingdom more flexibility in making future budgets,” Al-Madinah Arabic daily quoted the minister as saying.
While making the announcement on welfare allocation on Sept. 3, Prince Abdullah had said that a lion’s share of the expected surplus from rising oil prices would go for the repayment of public debts estimated at SR660 billion.
Analysts have projected that Saudi Arabia’s budget surplus this year would be as high as SR131 billion ($35 billion) as a result of surging world oil prices.
Prince Abdullah explained that SR30 billion from the surplus would be allocated for social and economic projects in the next five years, adding the government would give priority to projects in five sectors — water and sewage, roads and expressways, primary health care, school buildings, and technical and vocational education.
Prince Abdullah said the government selected the sectors for new projects after consulting Saudi experts.
He said the projects would help supply water to a number of new cities and villages, solve sewage problem in some areas and prevent the negative effect of flash floods.
For providing suitable housing for all Saudis in a gradual and organized manner, Prince Abdullah allocated SR9 billion to increase the capital of the Real Estate Development Fund. Allocations have also been made to increase job opportunities for Saudis.
“We have decided to increase the capital of the Saudi Credit Bank from SR1 billion to SR3 billion, which will be used to provide loans to people with limited income. The bank will also provide loans to Saudi youths to establish small-scale projects, which will not only help their owners but also strengthen the national economy,” the crown prince said.
