The Council of Economic and Development Affairs has successfully finalized the executive plan for the Fiscal Sustainability Program, an integral part of Saudi Vision 2030. This program emphasizes that the timely completion of the plan represents one of the most significant milestones under the vision.
Initiated in 2016, the Fiscal Sustainability Program (previously known as the Fiscal Balance Program) includes a series of financial reform measures aimed at ensuring long-term financial and economic sustainability. The program, SPA reported, is crafted to facilitate a more stable fiscal future by establishing a balanced and resilient financial system capable of adapting to various changes.
Adaptability and continuous enhancement of fiscal sustainability
This adaptability empowers the government to consistently improve fiscal sustainability, utilizing initiatives under the program that have been woven into the core operations of the Ministry of Finance and multiple governmental entities. Consequently, the government’s fiscal position has become stronger and more resilient than ever, preparing it to confront challenges.
Improvements in spending efficiency and financial planning
The completion of the executive plan for the program has led to improved spending efficiency, increased revenues, and better financial planning capabilities. These advancements have fortified the financial position and robustness of the Saudi economy. Additionally, the plan has equipped public finances for structural changes and reforms related to the implementation of Vision 2030 programs and initiatives. The program has played a vital role in supporting the execution and completion of various projects and objectives delineated in the vision.
Remarkable results and non-oil revenue growth
The program has accomplished several notable results, primarily its contributions to elevating non-oil revenues from SAR186 billion in 2016 to SAR458 billion in 2023, reflecting a growth rate of about 146 percent. The share of non-oil revenues in covering total spending surged from 22 percent in 2016 to 35 percent in 2023, achieved through a series of policies and initiatives aimed at realizing the goals of diversifying and enhancing public revenues.
Establishment of entities for improved spending efficiency
The program also facilitated the establishment of several entities, including the Expenditure and Project Efficiency Authority (EXPRO) and the Government Projects Authority. These entities, in collaboration with government organizations, have contributed to better spending efficiency and achieved an annual financial impact rate of approximately SAR114 billion, totaling a financial impact of SAR687 billion from 2018 to 2023.
Role of the National Debt Management Center
The National Debt Management Center has played a pivotal role in accessing debt markets and managing the government’s debt portfolio. Meanwhile, the Non-Oil Revenue Development Center has contributed to diversifying, increasing, and sustaining revenues while reducing reliance on oil revenues.
Development of public finances and financial planning
The program has significantly advanced the state’s public finances by creating a qualitative leap in financial planning through various initiatives related to data analysis and its utilization. It has activated electronic solutions and automated government financial systems, such as the Etimad platform. This initiative has paved the way for transitioning to accrual accounting and establishing a unified treasury account for the state, while also enhancing the process of preparing the state budget and improving transparency. The program has also enhanced the efficiency of government support mechanisms through the Citizen’s Account program, which will continue to provide support after the program’s completion.
A key achievement for Saudi Vision 2030
The Fiscal Sustainability Program is one of the realization programs of Saudi Vision 2030 and is the second one to be launched following the National Transformation Program (NTP). The completion of the program’s executive plan is regarded as one of the most significant achievements of Saudi Vision 2030, paving the way for informed decisions regarding the Kingdom’s development efforts.
