RIYADH, 19 November 2007 — Saudi Finance Minister Ibrahim Al-Assaf told reporters in a press conference yesterday that the 2008 national budget expected to bring “good news”.
Answering a question by the press on the impact of high crude oil prices on the national budget, the minister said “it was being prepared and is expected to be announced very soon.”
“The report will be announced within a few days,” he said. The minister said the budget would emphasize three main points:
• Reducing public debt.
• Continuation of building the infrastructure.
• Continuation of developing human manpower.
“The (new) budget will follow the previous budget’s strategies,” he explained.
Last year, Saudi Arabia announced the largest budget in its history with expenditures projected at SR380 billion ($101 billion) and revenues at SR400 billion ($106 billion), reflecting the growing strength of its economy. The Kingdom also disclosed that it would make a record budget surplus of SR265 billion this year and cut down public debt to SR366 billion by the end of 2006.
Last year’s budget, which was disclosed at a Cabinet meeting in Riyadh, said allocations made for expenditures in 2007 were SR45 billion higher than that of 2006 budget where expenditures were put at SR335 billion.
According to the minister, Custodian of the Two Holy Mosques King Abdullah allocated SR40 billion from the 2006 budget surplus for additional development projects and SR20 billion to increase the capital of Public Investment Fund (PIF).
The 2006 budget allocated SR96.7 billion for education and manpower training, SR39.5 billion for health, SR15.5 billion for municipal services, SR13.6 billion for transport and telecom sectors, SR24.8 billion for water, agriculture and infrastructure sectors.
Loans given by Real Estate Development Fund, Saudi Industrial Development Fund, Saudi Credit Bank and Agricultural Bank amounted to SR216 billion by 2006.
