This is the first time the country will record a surplus in almost ten years.
The country has been benefiting from the increase in oil prices since the Russian-Ukraine war started.
This is unlike Nigeria that has yet to make any benefit from the high crude prices,a situation that has been attributed to oil theft and payment of subsidies, among others.
According to Saudi Arabia’s finance ministry, the surplus for 2022, said to be $3.2 billion higher than the country expected, amounted to 2.6 per cent of its gross domestic product (GDP).
On Wednesday, Mohammed bin Salman, Saudi Arabia’s crown prince, said that the success of the kingdom’s reforms in the operating model of the public sector and the economy contributed to the achievement of a budget surplus.
The Saudi Press Agency (SPA) quoted the crown prince as saying the budget surplus would be directed towards boosting government reserves, supporting state funds and strengthening the kingdom’s financial position.
The crown prince said the GDP growth is expected to reach 8.5 per cent, higher than the 7.6 per cent predicted by the International Monetary Fund (IMF), by the end of this year
He also praised the increase in women’s economic participation from 17.7 per cent to 35.6 per cent.
“His Highness also indicated that the state’s budget for 2023 comes as a continuation of achieving the goals of the Kingdom’s Vision 2030, as it focuses on accelerating the achievement of results, as the government has succeeded in implementing many supportive initiatives and structural reforms to enable economic transformation and involve the private sector in the transformation journey.
“HRH Crown Prince also explained that strategies, programs, initiatives and procedures are being carried out periodically to ensure their effectiveness, and correct their course whenever the need arises.
“His Royal Highness stated that the government, in addition to spending in general, carries out a number of major initiatives that will contribute to strengthening the role of the private sector and attracting foreign investments that will help achieve the aspirations and ambitions of the Kingdom’s Vision 2030, based on the strengths that Allah the Almighty has bestowed upon this country ranging from a distinguished strategic location to a pioneering investment power, and an Arab and Islamic depth,” the SPA said.
Saudi Arabia also approved a 1.114 trillion riyals ($296 billion) budget for 2023, while forecasting a surplus of 16 billion riyals ($4.3 billion) in 2023.
