Riyadh: The Council of Economic and Development Affairs successfully completed the executive plan for the Fiscal Sustainability Program, which is part of Saudi Vision 2030. The program stated that the timely completion of the plan marks one of the most prominent milestones under the vision.
According to Saudi Press Agency, launched in 2016, the Fiscal Sustainability Program (formerly Fiscal Balance Program) encompasses a series of financial reform measures aimed at ensuring long-term financial and economic sustainability. The program is designed to pave the way for a more stable fiscal future by establishing a balanced and robust financial system capable of adapting to various changes.
Such adaptability enables the government to continuously enhance fiscal sustainability, utilizing initiatives under the program, which have been integrated into the core operations of the Ministry of Finance and various governmental entities. Hence, the government's fiscal position has become stronger and more resilient, equipping it to face challenges.
The completion of the executive plan for the program has improved spending efficiency, boosted revenues, and enhanced financial planning capabilities. These advancements have bolstered the financial position and robustness of the Saudi economy. Furthermore, the plan has prepared public finances for structural changes and reforms related to the implementation of Vision 2030 programs and initiatives. The program has played a crucial role in supporting the execution and completion of various projects and objectives outlined in the vision.
The program has achieved several remarkable results, chiefly its contributions to increasing non-oil revenues from SAR186 billion in 2016 to SAR458 billion in 2023, with a growth rate of about 146%. The share of non-oil revenues in covering total spending rose from 22% in 2016 to 35% in 2023, achieved through a series of policies and initiatives aimed at realizing the goals of diversifying and growing public revenues.
The program also contributed to the establishment of several entities, including the Expenditure and Project Efficiency Authority (EXPRO) and Government Projects Authority, which, in collaboration with government entities, contributed to improving spending efficiency and achieving an annual financial impact rate of approximately SAR114 billion, with a total financial impact of SAR687 billion from 2018 to 2023.
The National Debt Management Center played a key role in accessing debt markets and managing the government's debt portfolio. The Non-Oil Revenue Development Center contributed to diversifying, increasing, and sustaining revenues, reducing reliance on oil revenues.
The program contributed to developing the state's public finances by creating a qualitative leap in financial planning through several initiatives related to data analysis and its utilization, activating electronic solutions, and automating government financial systems (such as the Etimad platform). It paved the way for transitioning to accrual accounting and a unified treasury account for the state, as well as improving the process of preparing the state budget and enhancing transparency. The program improved the efficiency of government support mechanisms through the Citizen's Account program, which will continue to provide support after the completion of the program.
The Fiscal Sustainability Program is one of the realization programs of the Saudi Vision 2030 and is the second one to be launched after the National Transformation Program (NTP). The completion of the program's executive plan is considered one of the most important achievements of the Saudi Vision 2030, opening the way for enlightened decisions regarding the Kingdom's development endeavor.