HE Mohammed Al-Jadaan, Minister of Finance for Saudi Arabia, today announced the Government’s first ever quarterly budget performance update, covering the first three months of 2017. Revealed during a press conference held today at the Ministry’s headquarters in Riyadh, the first quarter budget performance update indicated an increase in revenues, an improvement in public spending efficiency and a deficit reduction, compared to the first quarter of 2016. It also highlighted that basic services provided to citizens are a top priority for Government spending.

The first ever budget update is in keeping with the Government’s commitment to transparency and accountability, and in accordance with the Open Budget Index requirements, as the country moves towards meeting the ambitious targets set out in both its National Transformation Plan and Vision 2030.

The highlights of the Q1 2017 budget update are as follows:

Revenue was SAR 144.1 billion, an increase of 72% year-on-year

• Non-oil revenue increased slightly (up by 1%) to SAR 32 billion, compared to Q1 2016
• Oil revenue increased by 115% over the same period, to SAR 112 billion, driven by the increase in global oil                   prices

Expenditure was SAR 170bn, a reduction of 3% year-on-year

• 23% of budget expenditure was targeted towards education, the biggest single sector spend
• Nearly 46% of budget expenditure was on socially important measures such as education, health and social                     development and municipal services

Total expenditure accounts for 19% of the projected annual budget

• The deficit for the Q1 period was SAR 26 billion, a decrease of 71% year-on-year