The figures presented in the quarterly report of the State's budget for the second quarter of fiscal year 1440/1441 A.H (2019) show that the Kingdom is on the right track to achieve the goals of Vision 2030, progress in implementing the reform and resource management programs, increase the efficiency of government spending and restructure the overall economy and diversify its sources.
The results reflected an improvement in the financial performance during the first half of this year compared to the same period of the last year.
The quarterly report confirms the progress made by the government of the Custodian of the Two Holy Mosques in its financial initiatives consistent with the goals of the fiscal balance program, the achievement of the financial sustainability and the distinctive shift of many economic and social aspects.
For instance, the figures showed high growth rates in the non-oil revenues and expenditures on an annual basis. Oil revenues increased by 14.4% to SR162.11 billion.
Social benefits and workers' compensation expenditures increased by 3% each compared to the same period of the last year. Subsidies have more than doubled as a result of the implementation of the Private Sector Stimulus Plan such as the Consolidated Bill Initiative for Supporting Small and Medium Enterprises.
The State continues to focus on the expenditure priorities with social and economic revenues, especially the Citizen Account Program, the Private Sector Stimulus Plan and the Kingdom's Vision 2030 programs. This period has seen continued increases in the spending on the social protection programs such as the Citizen Account, Social Security, Cost of Living Allowance and Student Stipend. Expenditures in sectors of health, social development and municipal services have increased by 13% and 22%, respectively.
Capital expenditures have risen by 22% with the progress in the implementation of housing projects and other development projects.
All in all, the Kingdom's spending have risen by 5% to SR294.2 billion in the second quarter, compared to the same period of the last year. On an annual basis, spending increased 6% in the first half of this year, corresponding well with the budget's target to increase spending by 7% in 2019 to stimulate the economic growth.
The balanced increase in spending will be a catalyst for all economic sectors, especially the private sector, and will reinforce its role as a source of activity and a generator of jobs.
These will positively affect the economic activity, boost the investor's confidence and increase job opportunities for citizens.