JEDDAH: Saudi Arabia plans to more than triple the government’s non-oil revenues and clamp down on public sector salaries over the next five years, ministers said as they described reforms designed to reduce the economy’s dependence on oil.

The National Transformation Plan (NTP) aims to boost the state’s non-oil revenue to SR530 billion ($141 billion) by 2020, documents distributed to reporters in Jeddah showed.

The NTP, which includes over 500 projects and initiatives as well as performance indicators for ministries and other government agencies, will cost around 270 billion riyals to implement, the document showed.

The plan is part of a wider, long-term reform drive known as Vision 2030, which was announced by Deputy Crown Prince Mohammed bin Salman in April.

He aims to overhaul many aspects of Saudi Arabia’s economy and society as the kingdom prepares for a future of shrunken oil revenues and a rising population.

The finances of the world’s top oil exporter have been hit hard since the summer of 2014, when crude prices plunged, producing a state budget deficit of nearly $100 billion last year.

Under the NTP, new non-oil revenue is expected to come from the introduction of a value-added tax (VAT), so-called “sin taxes” on sweet drinks and tobacco, and additional fees imposed on the private sector.

The government will strive to reduce the value of public salaries and wages as a proportion of the budget to 40 percent from 45 percent by 2020, and cut water and electricity subsidies by 200 billion riyals.

The energy ministry aims to maintain its oil production capacity at 12.5 million barrels a day while raising its gas output capacity to 17.8 billion standard cubic feet a day from 12 billion, the document said.

The following are the main objectives of the 112-page NTP:

— Generate 450,000 jobs in non-government sectors

— Reduce the wage bill from 45 to 40 percent of the state budget

— Implement more than 500 initiatives at a cost of SR270 billion ($72 billion), 40 percent of which would come from the private sector

— Raise non-oil revenues from SR163.5 billion to a staggering SR530 billion 

— Boost public assets from three trillion to SR5 trillion, a 67 percent rise

— Maintain oil production capacity at 12.5 million barrels per day, while raising gas production from 11 billion cubic feet to 17.8 billion cubic feet daily

— Raise the number of annual Haj pilgrims from 1.5 million to 2.5 million, while increasing the number of Umrah visitors from seven million to 15 million per year

— Build an international complex for marine industries that will provide 80,000 jobs and cut imports by $12 billion a year

— Continue to cut subsidies, with reductions in water and electricity subsidies projected to save SR200 billion

— Raise the value of non-oil exports from SR185 billion to SR330 billion

— Cut the unemployment rate for Saudis from 11.6 percent to nine percent

— Raise the proportion of women in the job market from 23 percent to 28 percent

— Increase investments in tourism from SR145 billion to SR171.5 billion 

— Boost Foreign Direct Investment from SR30 billion to SR70 billion