The Ministry of Finance issued the quarterly report on the performance of the state budget, in the second quarter of the Fiscal Year 1439/1440 H (2018-2019). The report included several indicators and data reflecting government's commitment to transparency and financial disclosure, strengthening the governance and control of public finances. Financial indicators for the performance of the general budget of the state, in the second quarter of the Fiscal Year 1439/1440H (2018), are as follows, according to the report: - Total revenues for the second quarter amounted to SR273.588 billion, an increase of 67% over the same quarter last year. - Non-oil revenues for the second quarter amounted to SR89.423 billion, a growth rate of 42% compared to the same quarter last year. - Oil revenues during the second quarter amounted to SR184.165 billion, a growth rate of 82% compared to the same quarter last year, driven by improved oil prices in the world markets. - Total expenses during the second quarter amounted to SR280.950 billion, an increase of 34% compared to the same quarter last year. - Budget deficit for the second quarter was SR7.361 billion, as the deficit rate declined due to positive growth in revenues. - Public debt rose from SR443.253 billion at the beginning of the year 2018 to SR536.954 billion by the end of the second quarter. The financial indicators for the performance of the general budget of the state for the first half of the Fiscal Year 1439/1440H (2018), were as follows: - Total revenues for the first half amounted to SR439.851 billion, an increase of 43% compared to the same period last year. - Total expenses for the first half amounted to SR481.542 billion, an increase of 26% compared to the same period last year. - The actual disbursement rate at the end of the second quarter (first half of the year) was about 49% of the total estimated budget, during the year. - Deficit in the first half amounted to SR41.690 billion. - Social sectors such as education, health, social development and municipal services accounted for 42% of the total expenditure, in the first half. Commenting on the financial results for the second quarter, the Minister of Finance Mohammed bin Abdullah Al Jadaan said: "The financial figures announced for the second quarter of this year reflect improvement in the performance of public finances and continued efforts to implement our reform-wise plans. The Ministry of Finance is working side by side with other government agencies through the continuous coordination of efforts to harmonize policies and procedures in support of the Kingdom's macroeconomic stimulus and to achieve the goals of the Fiscal Balance Program. He pointed out that the improvement in financial performance was also accompanied by an improvement in economic performance, as the Real Gross Domestic Product (GDP) grew by 1.2% during the first quarter of this year, while the non-oil sector grew by 1.6%. Preliminary economic indicators showed continued improvement in economic activity in the second quarter of this year, especially private consumption, cash sales and cash withdrawals increased during the period, as did private investment. The Purchasing Managers' Index (PMI) has seen progress, and private credit in the second quarter registered positive growth for the first time since the first quarter of 2017. These indicators provide a positive outlook that bolsters optimism that the Saudi GDP will continue to improve for the second quarter, boosted by improved levels of government spending and investment, as well as the recovery of global oil markets. In the same context, Al-Jada'an welcomed IMF delegation report following Article IV of 2018 visit to the Kingdom, which was largely in line with the budget performance indicators, in terms of significant improvement in the fiscal situation that contributed to the reduction of the fiscal deficit and the growth of non-oil revenues, raising expenditure efficiency, progress in strengthening the medium-term fiscal framework, raising transparency and developing an overall fiscal analysis. The progress achieved in the implementation of the reform programs within the Vision 2030 and its positive impact on the economic situation of the Kingdom, which led to raising the expectations of economic growth for the current Fiscal Year and positive economic prospects, consequently.
