In 2015, Saudi Arabia's budget deficit reached a record high of $98 billion. But it looks like the kingdom is bouncing back.
Financial results for the second quarter of 2017 reveal that the kingdom's budget deficit has halved during the first six months of this year, >Arab News reported on Sunday.
This comes as the kingdom implements sweeping economic reforms under Saudi Vision 2030.
"The financial figures announced for the second quarter reflect the improvement in the performance of the State's general finance," Minister of Finance Mohammed Al-Jadaan said, according to the Saudi Press Agency (SPA).
Figures show a progress in earnings and a decrease in expenditure, leading to a drop in the state's budget deficit.
According to >SPA, the deficit dropped by 51 percent to SR72.73 billion ($19.38 billion) in the first half of 2017.
Total revenues saw a 29 percent increase during the first half of 2017 in comparison with the same period last year, while spending fell by 2 percent.
"Although the economic challenges are still existing, we are confident that we can meet our expectations for the fiscal deficit for 2017," Finance Minister Al-Jadaan said.
"The second quarterly report shows the effectiveness of economic reforms and measures in the National Transformation Program within the Kingdom's vision 2030."
"Finance ministry issues its second quarter report on the performance of the state's budget."
The figures were announced as part of the public quarterly-budget reports, which were introduced for the first time this year to promote government transparency under Crown Prince Mohammed bin Salman’s Vision 2030 plan.
"We are fully committed to implementing the highest standards of transparency and financial disclosure through publishing periodic data and reports in order to maintain the confidence of all those of interests in the progress we are making in the objectives of the Kingdom's Vision 2030," the finance minister >explained.
How is Saudi Arabia boosting its economy?
The Vision 2030 plan, announced by the kingdom last year, aims to create jobs, implement taxes, cut subsidies and reduce reliance on oil revenue by diversifying the Saudi economy.
Among the economic reforms taken under Vision 2030, the kingdom has decided to >introduce a five-percent Value-Added Tax (VAT) starting January 2018.
The kingdom has already >begun imposing a 100 percent excise tax on tobacco products and energy drinks.
The country is also preparing to >sell five percent of Saudi Aramco – the world's largest producer of crude oil – to investors.
Additionally, Saudi Arabia announced last year a 20 percent pay cut for all ministers and a 15 percent pay cut for Shura Council members.