25/12/2010
Asharqia Chamber's Information Center monitors the most prominent features of the Kingdom general budget
Development projects enhances the growth sustainability to increase employment opportunities for Saudi citizens
47 billion government loans expected by the national funds by the end of 2011
Increasing in allocations of infrastructure projects by 13% reflecting its importance in attracting investments
An economic report recently issued by Asharqia Chamber Information Center shows the prominent features ofthe new Kingdom budget for the year 1432/1433 (2011) and the content of the prospect of benefit to citizen and the investor as well as projects that support the overall development process.
Under the title (The importance of general budget for the businessmen sector in Kingdom) said the report: " Budget indicators and data carries a great importance to the businessmen sector , the domestic and the external sector, and for the overall economic activities.
The report said that many businessmen are building their future plans orientation process on the content of the general budget by the Kingdom of goals and indicators.
The report also pointed out that the GDP of the Kingdom in the year 2011 will reach, according to the Department of Statistics and information to 1630 billion riyal at current prices, a growth of 16.6% compared to its value in the previous year 2009.
The private sector isshowing signs of a healthy comeback, assisted by the government's commitment to invest and a guarded pickup in bank credit growth.
The Kingdom has accumulated huge reserves during a six-year oil price boom and is planning to spend more than $400 billion over the five years to 2013 to upgrade infrastructure, including airports and roads.
For 2011, the government plans to increase spending for education, health, transport and other infrastructure projects ranging some 5 to 13 percent over budgeted 2010 figures.
The International Monetary Fund forecasts Saudi Arabia’s GDP to expand by around 3.4 percent in 2010 and 4.5 percent in 2011. The Kingdom, the world’s top crude exporter, has benefited from oil prices above $73 a barrel for most of the year, with prices more recently hovering near the $90-a-barrel mark.
The report said that the budget data refer to the kingdom continuance to promote spending on infrastructure to support their economic progress, so by allocating about 24.5 billion Saudi riyals for municipal services, equivalent to about 4% of the budget next year, an increase of 13% over what was appropriated in the budget for the year the previous fiscal.
The World Bank report mentioned the investment analysis for the 2011 by classifying the Kingdom rank 11 out of 183 countries were evaluated laws and regulations governing the investment climate, advanced from the 13th rank achieved in 2010.
According to the report, budget has also focused to drive more development projects, which gives an indication that the spending for the next fiscal year will be ongoing, and will be reflected on the private sector, which has also been allocated about 25.2 billion SR for transport and communications, equal to 4% of the budget year next.
The report addresses the future directions of the Government of the Kingdom to manage the national economy by allocating almost 68.7 billion Saudi Riyals for the health services and social development, equivalent to about 12% of the budget next year, an increase of 12% over what was appropriated in the budget of the previous fiscal year.
The report also highlighted the Education sector which have been allocated about 150 billion SR for public education and higher education and manpower training equals to 26% of the next year budget, an increase of 8% over what was appropriated in the budget for fiscal year 1431/1432 AH.
Achieving a budget surplus estimated by 108.5 billion riyals, and a decrease in the general debt by the end of the current fiscal year to nearly 167 billion riyals, compared with $ 225 billion riyals by the end of the last fiscal year 2009.
The report stressed that the satisfactory results of Kingdom budget will be working to attract an important Saudi businessmen who have invested their money in many foreign markets, and lending in the industrial, agricultural, and will contribute to these loans, to provide more job opportunities and advancing the growth .. As what has been disbursed from the loan offered by the Real Estate Development Fund, and the Industrial Development Fund, the Saudi Credit & Saving Bank, along with the Agricultural Development Fund and the Public Investment Fund and the lending programs of the government since its beginning and until the end of the current fiscal year 1431/1432 AH more than 414.3 billion riyals, It is expected from loans to reach more than 47 billion riyals for the next fiscal year 1432/1433 AH.
The report noted that public debt will decrease by the end of the current fiscal year (2010 nearly to 167 billion riyals.
The report concluded that the monetary policy pursued by the Kingdom is such a balanced policy to diversify the economic base of the kingdom, - which helped to avoid the threat of the global financial crisis – As the private sector now will take the lead in economic activity and benefit from the projects by the Kingdom from new investment opportunities affirmed by the budget in various sectors.
The total liabilities of banks from both public and private sectors during the same period by 6.2%, as banks continued to strengthen their financial capacity, rising its capital during the same period by 10.7% to reach 181.1 billion riyals.
