On the occasion of the adoption of the State Budget for the fiscal year 2001 [1421/1422 H], the Ministry of Finance and National Economy is pleased to highlight the main features of the national economy and the budget.
Economic developments in 2000
The Gross Domestic Product (GDP) is estimated to have grown during 2000 by 15.5 percent in current prices (4.11 percent in constant prices), to reach SR 618 billion [U.S. $ 164.8 billion] as compared to SR 535 b. [$ 142.67 b.] in 1999. One of the major factors contributing to this growth is the increase in oil prices as well as the quantities produced. As a result, the oil sector is expected to have grown by 39.4 percent in current prices. Private sector GDP is estimated to have grown by 3.13 percent in current prices. In particular, the non-oil industrial sector is estimated to have grown by 7 percent, the construction sector by 3 percent, the utilities sector by 4 percent, and the transport and communications sector by 3 percent in current prices. The non-oil GDP deflator is estimated at 0.75 percent, which is consistent with the small decline in the cost of living index.
The Balance of Payments, according to preliminary data from the Saudi Arabian Monetary Agency (SAMA), is estimated to record in the current account for 2000 a surplus amounting to SR 55.6 b. [$ 14.83 b.], resulting from the increase in the prices and quantities of oil and petrochemical products in spite of the expected growth in imports and transfers. Non-oil exports are estimated to have grown by 10.2 percent in 2000, to total SR 24 b. [$ 6.4 b.].
In the Banking Sector, bank deposits recorded a growth of 4.3 percent during the first ten months of 2000 while currency outside banks dropped by 15.7 percent. With regard to banks' capital and reserves, their growth is expected to be 2.3 percent in the same period, reaching SR 43.3 b. [$ 11.55 b.] as of the end of October 2000.
The Stock Market continued to improve during 2000, as a result of the increase in economic activity and the improvement in investment environment. The NCFEI share index stood at 2,286 as of December 14, 2000, compared to 2,028 at the beginning of the year, an increase of 13 percent.
Outcome for Fiscal Year 1420/1421 (2000)
The Ministry of Finance and National Economy expects revenues to have reached SR 248 b. [U.S. $ 66.13 b.] in 2000, with expenditure at SR 203 b. [$ 54.13 b.]: the remaining revenues are allocated to settle part of the debt obligations as well as outstanding payments for farmers and contractors.
State Budget for 1421/1422 (2001)
Total revenues for FY 2001 are projected at SR 215 b. [$ 57.33 b.].
Government expenditure for FY 2001 is budgeted at SR 215 b. [$ 57.33 b.].
The budget includes new programs and projects amounting to SR 38 b. [$ 10.13 b.], mostly for education, health, social services, roads, municipalities and water authorities.
Appropriations for the main development and public service sectors for 1421/1422 are as follows:
Education and manpower training SR 53.3 b. [$14.21 b.] (+ 8 %)
Health and social services SR21.9 b.[$ 5.84 b.] (+ 10%)
Municipalities and water authorities SR8.7 b. [$2.32 b.] (+ 23%)
Transport and communications SR5.8 b. [$1.55 b.] (+ 4%)
Infrastructure, industry and agriculture SR11.2 b.[$ 2.99 b.] (+ 6%)
In addition, the specialized development institutions (the Industrial Development Fund, the Agricultural Bank, the Real Estate Development Fund, the Bank of Credit, and the Public Investment Fund) will continue to be active in providing loans to projects and services in the areas of industry, agriculture and real estate. These credits are projected to reach SR 6.3 b. [$ 1.68 b.] in the year 2001.