Unraveling the success of the Kingdom's Financial Sustainability Program

Arab News

15-02-2025

The Council of Economic and Development Affairs announced the completion of the executive plan for the Financial Sustainability Program on schedule.
The program, part of the Kingdom's Vision 2030, was launched in 2016 under the name Fiscal Balance Program as part of several initiatives aimed at ensuring long-term financial and economic sustainability.
It has also paved the way for more sustainable and promising financial prospects, by establishing a balanced and robust financial system capable of adapting to unexpected changes, enabling the government to operate without interruptions or gaps.
The program has enhanced the financial sustainability of Saudi public finances through initiatives translated into mechanisms and procedures within the Ministry of Finance as well as various government agencies.
As a result, the government's financial position today is stronger than ever and more capable of facing challenges.
The program has also achieved several milestones, such as raising the efficiency of government spending, enhancing public revenues and improving financial planning capabilities, all of which have contributed to strengthening the Kingdom's financial position and the durability of the Saudi economy.
It is worth noting that the program has played a fundamental role in supporting the implementation of several projects under Vision 2030.
The program has also achieved notable accomplishments, particularly contributing to a significant increase in non-oil revenues from $49.6 billion in 2016 to $122.1 billion in 2023, representing a growth of about 146 percent.
The program enhanced public financial management by introducing a shift in financial planning through initiatives focused on data analysis, technical solutions and automating government financial systems.
Non-oil revenues covering total spending also increased from 22 percent in 2016 to 35 percent in 2023, through the launch of policies and initiatives aimed at diversifying government revenues.
The program has helped establish several government entities, including the Expenditure and Projects Efficiency Authority, which has collaborated with various government agencies to enhance spending efficiency.
Additionally, the program helped establish the National Debt Management Center, which played a pivotal role in accessing debt markets and managing the government's debt portfolio, as well as the Non-Oil Revenues Development Center, which diversified and sustained revenues, thereby reducing reliance on oil.
The Expenditure and Projects Efficiency Authority has achieved an annual positive financial impact of about $30.4 billion, with a total impact of $183.3 billion from 2018 to 2023.
It is worth noting that the impact of these entities will continue even after the completion of the Financial Sustainability Program.
The program also enhanced public financial management by introducing a shift in financial planning through initiatives focused on data analysis, technical solutions and automating government financial systems, such as the Etimad platform.
Additionally, it helped develop the transition from cash-based accounting to accrual-based accounting and the unified treasury account, while enhancing the budget preparation process and increasing transparency.
Furthermore, the program contributed to improving the efficiency of government support by directing it to eligible citizens through the Citizen Account Program, which will continue providing support after the completion of the Financial Sustainability Program.
The program's delivery plan is considered one of the key achievements of Vision 2030, ensuring continued impact from other programs and initiatives while paving the way for informed decision-making regarding the Kingdom's development journey.
• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz