Saudi Arabia Budget Report 2024: KPMG Insights

The Ministry of Finance (MoF) of Saudi Arabia has approved the fiscal year 2024 budget statement, setting the stage for the economic landscape ahead. In our annual KPMG budget report, we provide our insights on the budget outlook, backed by internal analysis and reliable sources.

Overview of Economic Performance

After robust real GDP growth in fiscal year 2022, the economy is anticipated to expand at a more moderate rate in 2023, primarily due to reduced output in the oil sector. However, the non-oil sector is expected to exhibit healthy growth, driven by key sub-sectors such as transport, storage, and communications.

Factors Affecting Oil Prices and Non-Oil Sector

International oil prices have faced challenges from tepid demand and geopolitical tensions, resulting in modest support for oil producers. Conversely, private consumption in 2024 is expected to be buoyed by government policies and Vision 2030 initiatives, which aim to stimulate the broader economy through domestic investment and social protection programs.

Fiscal Estimates and Expenditure

The 2024 budget statement projects a YoY decrease of 5.9% in total revenues for the 2023 fiscal year, primarily aligned with the fall in oil prices. Meanwhile, actual government spending in fiscal year 2023 exceeded the originally planned expenditure, driven by policies to mitigate the impact of global inflation and targeted development spending.

Future Government Commitments

Looking ahead, the government remains committed to strategic expenditure on infrastructure, mega projects, and economic diversification to support the growth of the private sector. This includes anticipated spending on upcoming major events, such as Riyadh Expo 2030 and the World Cup 2034, with an emphasis on balancing fiscal sustainability with economic and social objectives. 

At KPMG, we provide in-depth analysis and insight into the Saudi Arabia budget report for 2024. We invite organizations to reach out for further discussions and feedback on our observations, as we continue to monitor the evolving economic landscape in the Kingdom.

Stay tuned for more detailed analysis and updates on the fiscal year 2024 budget statement.