KEY FINDINGS INCLUDE:

2021 Performance:

• The deficit for 2021 is estimated to reach SAR85 ($23 billion), or 2.7 percent of GDP, compared to an expected SAR141 billion ($38 billion) deficit due to a rapid recovery in global oil markets.

• Total revenues increased to an estimated SAR930 billion ($248 billion) in 2021, marking a 19 percent jump compared to 2020 which saw SAR782 billion ($209 billion) in revenues.

• Other revenues, including oil income, grew to SAR636 billion ($170 billion) compared to SAR555 ($148 billion) in 2020, marking a 14.4 percent increase.

• Total government expenditures in 2021 are expected to reach SAR1,015 billion ($271 billion) compared to SAR1,076 billion ($287 billion) in 2020, a 5.6 percent decrease.

2022 Budget:

• The Kingdom is budgeted to have its first fiscal surplus since 2013 to reach SAR90billion ($24 billion), equivalent to 2.5 percent of GDP, compared to –2.7 percent of GDP in 2021.

• Budgeted revenues are projected to reach SAR1,045 billion ($279 billion), of which 73 percent or SAR763 billion ($203 billion) will derive from other revenues (oil revenues are included in other revenues but the government did not provide specific oil revenue estimates).

• Tax revenues are budgeted to reach SAR283 billion ($75 billion) in 2022, accounting for 27 percent of total revenues. It also marks a 5 percent decrease from 2021. Compared to 2021, tax revenues will decrease by 4 percent next year. The VAT will be the driving force of tax income.

• Total expenditures in 2022 are budgeted to reach SAR955 billion ($255 billion), marking a 6 percent reduction from 2021 estimates. The government has put forth a plan to maintain its flexibility in implementing reforms that support developing the management of public finances.