Saudi Arabia to overspend budget by 15%

18 May 2011

(MENAFN) Saudi Finance Minister, Ibrahim Al-Assaf, said that as a result of extra spending on construction and job creation measures, this year, the country would overspend its budget by up to fifteen percent, reported Arab News.

Al- Assaf added that this year, the country’s economic growth would surplus four percent up from 3.8 percent in 2010, adding that the Kingdom would spend about USD130 billion of its yearly economic production on new houses, creating jobs, unemployment benefits and other measures. On the other hand, it would continue executing other huge investment programs, including investment expenditures in the budget of this fiscal year that amounts to USD70.6 billion.

He also said that despite the political upheaval in the region, the Kingdom’s economy continued to be steady and vibrant for no unusual financial movements occurred in the sector in the past few months.

It is worth noting that important resources are being committed to realize the various economic targets envisioned by the plans. The Ninth Development Plan allocated over USD373 billion, a 68.2 percent increase over the funds allocated to the Eighth Development Plan. Human Resources Development, which includes general education, higher education, technical and vocational training and science and technology and innovation, will receive about one half of total allocations.