The state owned Saudi media started again to praise Crown Prince Mohamed bin Salman for achieving a surplus in the 2022 budget, while facts revealed the real surplus and its impact on citizens.
According to the government institutions, statistics reveal that between 2000 to 2014, KSA recorded a budget deficit only 4 times (2001, 2002, 2009, 2014), with a consecutive deficit for 7 years between 2015-2021 during the era of King Salman and his son, Crown Prince Mohamed.
The surplus in the Kingdom’s budget is based on the economic policies of KSA as well as the dropping oil prices, which is the mainstay of the Kingdom’s revenues. MBS Vision 2030 was based on reducing dependence on oil and diversifying sources of income, all leading to twisting figures and facts to prove the success of the vision of the Crown Prince.
The reality is that the surplus is due to the reduction of government expenditures, as compared to 2019 expenditures, which were 1.059 billion riyals, expenditures were reduced to 955 billion riyals in 2022, a difference of 104 billion. The expected surplus is only 90 billion riyals, which would slow down investment projects, and reduce employment opportunities and harm citizens.
According to the statistics of the Ministry of Finance on revenues, the percentage of non-oil imports appears to have increased from 10% in 2010 to 40% in 2021, which means reducing dependence on oil, and increasing financial burdens on citizens.
While the figures for non-oil and non-tax revenues have continued to decline since the launch of Vision 2030, and the value of taxes increased by 340% from 87 billion riyals in 2017, to 295 billion riyals in 2021.
The significant increase in the tax rate by 340% with the imposition of more fines increased the percentage of non-oil revenues, instead of the diversification of the economy promoted by MBS.
The public debt increased by 27% from 678 billion riyals in 2019, to 938 billion riyals in 2021, with expectations of its stability during the current year.
Celebrating the “economic achievements” of MBS is just a celebration of the beginning, not to forget the frequent loans from the Public Investment Fund to finance Vision 2030 projects.
