The Ministry of Finance issued here today a press release about the State Budget for the Fiscal Year 1431/1432 H (2010). The following are some highlights of results of Fiscal Year (FY) 1430/1431 (2009), the 1431/1432 (2010) budget that has been approved by the Council of Ministers today, and recent economic developments in the Kingdom of Saudi Arabia. Outcome of Fiscal Year 1430/1431 (2009) The Ministry of Finance projects actual revenue to be SR 505 ($134.67) billion in 2009 and actual expenditure to be SR 550 ($146.67) billion, resulting in an actual deficit of SR 45 ($12) billion. Increases in actual over budgeted expenditures in 2009 reflect increases in expenditures on projects in the Two Holy Mosques and other "Mashair," food and welfare subsidies, transfer of temporary to permanent employment, and increases in student enrollments in universities as well as scholarships abroad program. Public debt is estimated to decline from SR 237.0 ($63.2) billion at the end of 2008 to SR 225.0 billion ($60) billion at the end of 2009, although as a percentage of GDP, it will increase from 13.3 per cent at the end of 2008 to 16.0 at the end of 2009 because of the decline in nominal GDP in 2009. The public debt is totally domestic. The National Budget for 1431/1432 (2010) The 2010 national budget will continue to focus on enhancing economic development and improving investment environment that supports strong and balanced economic growth. This year"s budget includes SR 260 billion for investment projects, a 16 percent increase over 2009 budget, an increase of about 16 percent over the last year"s budget, which was the largest historically, and about three times the level in 2005, the first year in the current 8th Development Plan. The budget gives high emphasis to projects that ensure sustainable and balanced development as well as job creation. Specifically, the focus continues to be on education, health, social and security services, municipal services, water and sewage services, and roads and highways. Moreover, the budget attaches a particular importance to projects related to research and development (R&D) as well as science and technology projects and the e-government. --MORE
