“The increase over the actual budgeted expenditures of SR224 billion reflects the implementation of the royal orders to pay two months’ salary bonus to all government employees,” the ministry said.
An increase in the monthly minimum wage to SR3,000 and the addition of the cost of living allowance to the basic salary also led to higher expenditure, it said.
The ministry said that an increase in the capital of the Real Estate Development Fund and the Saudi Credit and Saving Bank and additional expenditures on projects for the Two Holy Mosques and the cost of increased admission to the foreign scholarship program also contributed to the increase.
Preliminary estimates indicate that the value of public debt will decline from SR167 billion ($44.5 billion) at the end of 2010 to SR135.5 billion ($36.1 billion) at the end of 2011, which represents (6.3) percent of projected GDP for 2011. The stock of debt is totally domestic.
Total number of government projects signed with the private sector in 2011 were 2,600 with a total value of more than SR148.3 billion ($39.5 billion), the ministry said in a statement.
The following are the main highlights of the budget:
1. Total revenues are projected at SR702 billion ($187.2 billion).
2. Government expenditures are budgeted at SR690 billion ($184 billion).
3. Fiscal surplus is projected at SR12 billion ($3.2 billion).
The national budget will continue to focus on enhancing the development process and ensure that the investment programs remain conducive to strong and sustainable economic growth.
The budget puts emphasis on optimizing the use of available resources and giving priority to projects that ensure balanced development as well as more employment opportunities and job creation.
Specifically, focus will be on education, health, social services, security services, municipal services, water and sewage services, and roads and highways. Moreover, the budget attaches particular attention to science and technology projects and e-government.
a. Total expenditure amounts to SR168.6 billion ($45 billion), representing 24 percent of total budget appropriations and an increase of 13 percent over 2011 allocations.
b. Continued implementation of King Abdullah bin Abdulaziz Public Education Development Project (Tatwir) amounting to SR9.0 billion through the Education Development Holding Company owned by the Public Investment Fund (PIF).
c. New projects include 742 new schools (in addition to 2,900 schools currently under construction and more than 900 schools were completed in 2011 and rehabilitation of 2,000 existing school buildings.
d. For higher education, the new budget includes appropriations for the electronic university, opening of (40) new colleges, and completion of construction of campuses for the newly created universities including housing of faculty. Furthermore, the scholarship program (first and second phase) will continue in 2012. The total number of students studying abroad reached over 120,000.
a. Total expenditure amounts to SR86.5 billion ($23.1 billion), an increase of 26 percent over 2011 appropriation.
b. Projects include new primary care centers throughout the Kingdom, 17 new hospitals. At present, there are more than 130 hospitals under construction with a capacity of 28,470 beds and 22 hospitals were completed in 2011 with a capacity of more than 3,200 beds.
c. For social services, the new budget includes appropriation to build sports clubs, social centers, social welfare and labor offices. In addition, it includes further support for poverty reduction programs that will shorten the timeframe required to eradicate poverty.
2 Municipality services:
a. Total expenditure amounts to SR29.2 billion ($7.8 billion), an increase of 19 percent over the previous year.
b. New project include inter-city roads, bridges, and road lights, which should help ease traffic bottlenecks. It also includes other environment-related projects.
3
a. Total expenditure amounts to SR35.2 billion ($9.4 billion), an increase of 40 percent over 2011 as a result of the progress in the new King Abdulaziz Airport in Jeddah.
b. New projects include roads totaling 4,200 km to be added to 28,100 km of roads currently under construction. The budget includes appropriations to expand King Khaled International Airport, build King Abdullah Airport in Jazan, expand four regional airports and build additional seaport berths.
a. Total expenditure amounts to SR57.5 billion ($15.3 billion), an increase of 13 percent over 2011.
b. Appropriations for new projects include increasing water resources, dams and wells, as well as expanding and improving water and water treatment networks. There are also allocations for new water desalination plants and upgrading existing plants. New projects include building and expanding grain silos. New projects will also be undertaken in the industrial cities of Jubail, Yanbu, and Ras Alkhair to accommodate new investment projects.
Specialized credit institutions (Real Estate Development Fund, Saudi Industrial Development Fund, Saudi Credit and Saving Bank, Agriculture Development Fund, Public Investment Fund, and Government Lending Program) will continue to provide loans to support job creation and enhance growth prospect.
It is estimated that SR86.1 billion ($23 billion) will be disbursed in 2012 by these Institutions.
The total value of loans provided by these institutions since their inceptions amount to SR440 billion ($117.3 billion).
1 Gross domestic product (GDP)
According to Central Department of Statistics and information, GDP is estimated to reach SR2.16 trillion ($576.8 billion) in current prices in 2011, reflecting a growth of 28 percent compared to 2010. Private sector is estimated to grow by 14.3 percent in current prices in 2011.
In real terms, Overall GDP is estimated to grow by 6.8 percent, with government sector growing by 6.7 percent and private sector by 8.3 percent in 2011.
The private sector’s contribution to GDP is expected to be 48.8 percent.
All components of the GDP recorded positive growth in 2011.
In particular, the non-oil industrial sector is estimated to grow by 15 percent; construction sector by 11.6 percent; electricity, gas, and water sector by 4.2 percent; transport and communication sector by 10.1 percent; wholesale, retail, restaurants, and hotels by 6.4 percent; and finance, insurance and real estate by 2.7 in constant prices.
Inflation, as measured by the cost of living index, is estimated at 4.7 percent in 2011, while the non-oil GDP deflator showed an increase of 6.1 percent.
According to Saudi Arabia Monetary Agency (SAMA) preliminary data, total exports of goods are estimated to be SR1.29 trillion ($343.2 billion) in 2011, representing an increase of 37 percent over 2010. Non-oil exports of goods are estimated at SR153 billion ($40.8 billion), reflecting an increase of about 14.0 percent and representing 12 percent of total goods exported.
Total imports of goods are estimated at SR370 billion ($98.7 billion) in 2011, representing a growth of 2 percent compared to 2010.
According to the SAMA preliminary data, trade balance is estimated to record a surplus of SR915 billion ($244 billion) in 2011, an increase of 59 percent compared to last year, as a result of the increase in oil and non-oil exports and the low growth in imports.
Current account is estimated to record a surplus amounting to SR598 billion ($159.5 billion) in 2011 compared to SR250 billion ($66.7 billion) in 2010, an increase of 139 percent.
The broad money supply during the first ten months of fiscal year 2011 grew by 10.2 percent compared to 1.2 percent for the same period of previous year. With regard to banking sector, bank deposits recorded a growth rate of 8.4 percent during the first ten months of 2011, total banks claims on public and private sectors increased by 10.1 percent and their capital and reserves increased by (7.2) percent reaching SR191 billion ($50.9 billion).
A number of initiatives and government actions that should enhance the confidence of the private sector leading to its robust growth have taken place during this fiscal year, these include:
a. Fitch confirmed Saudi Arabia sovereign rating at (AA-).
b. International Finance Corporation of the World Bank Group has put Saudi Arabia at No. 13 among 183 countries in terms of doing business.
c. New entities and fiscal, institutional, and structural reforms have been introduced in 2011 such as the Ministry of Housing, the Statute of the National Anti-corruption Commission, the law of the Saudi Red Crescent Authority, the law of government revenues, and the law of civil affairs.
