The Minister of Finance Saudi, Mohammed al -jadaan, told the Financial Times that the Kingdom will continue its current public expenditure despite the expansion of the budget deficit, “but at the same time it will examine the priorities of exchange and the main development projects in light of the low oil prices and the increase in the fog in the global economy”.
He explained that the kingdom will take advantage of the period of low oil prices, in addition to the unconfirmed global expectations; To evaluate how it is managed by a wide range of development projects, underlining that the Saudi government “will not waste this crisis”, indicating that the current challenges could be a motivation to take bold measures and the necessary structural reforms.
He added: “We will not waste the crisis. People think that what is happening in the world is a crisis, but our economy is very well. It is an opportunity to reconsider things … If there is an opportunity to do something bold, do it.”
He underlined that “the crisis offers us the opportunity to evaluate the issues and the thought”, he said, asking: “Are we hurrying to implement projects? Are there unwanted consequences? Should it be postponed, re – -Mollato or accelerated?”
An “anti -flowering” approach
The Minister of Finance stressed that the main objective is to avoid falling into the “trap of economic courses between prosperity and contraction”, underlining that the government adopts an “anti -flavor” approach, since “the expense is aimed at supporting growth, instead of seeking only to achieve the balance of the budget”.
Al -jadaan stressed that the expansion of the financial deficit at 3, 4 or even 5 % of the GDP is not worried, “as long as the expense contributes to the growth of non -oil sectors,” stressing that the kingdom has abundant financial reserves, sufficient foreign reserves and a “ample space” in the financial margins.
In the same context, Al -jadaan said that the “public investment fund” is in turn subject to the accurate and strategic revision process with the aim of “priorities told”, in line with local and international changes.
Despite the expectations of the International Monetary Fund to increase the budget deficit in Saudi Arabia to over 4 percent of GDP this year, at the -jadaan has excluded the existence of a reasonable scenario that makes the public debt that approaches the maximum allowed by 40 percent of the GDP and said: “I have not seen a reasonable scenario that makes this approach to this ceping approach.”
