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(MENAFN - Khaleej Times) JEDDAH — Saudi Arabia's 2007 budget aims at the development of vital sectors and projects including new universities, schools, hospitals, health centres and industrial cities as well as development projects of the Grand Mosque in The Holy City of Makkah and other holy sites, according to Finance Minister Ibrahim Al Assaf.
The minister said on Saudi Arabian Television Channel One that the government planned to cut down public debt from 28 per cent of the gross domestic product to 24 per cent. While making the budget announcement, Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz had said that the public debt would be brought down to SR366 billion by the end of 2006.
The 2007 budget, the largest in the Kingdom's history, projected expenditures at SR380b and revenues at SR400b. It was also disclosed that the Kingdom would make a record budget surplus of SR265b. The allocations made for expenditures in the 2007 budget were SR45b higher than that of 2006 budget. Al Assaf said that the King has instructed all ministries and government departments to carry out their new development projects in time, and added that a ministerial committee had been formed to discuss obstacles to the implementation of projects or deficiencies in the number of contractors. Referring to the fall in GDP growth to 4.2 per cent from last year's 6.54 per cent, the minister said it was due to a decline in oil prices.
He said large-scale expenditures on development and service projects would have a positive impact on the national economy at large. "All sectors will benefit from these expenditures," he said. In his statement on the budget, Economy and Planning Minister Khaled Al-Gosaibi said that the budget was aimed at improving the living standard of citizens, creating more job opportunities for them and expanding educational, health, infrastructure and service facilities. "It has also taken into consideration of the Kingdom's development strategy focusing on manpower development," Al Gosaibi said referring to large-scale allocations for education and manpower training. "The GDP growth of 4.2 per cent and private sector GDP growth of 6.5 per cent denotes the strength of the national economy," he added.
Prince Sultan bin Salman, secretary-general of the Supreme Commission for Tourism, said the new budget would help promote tourism, as it would enhance service and infrastructure facilities in the country. He emphasised the growing role of the tourism sector in the national economy. "It will boost the economy, support diversification drive and create more jobs," he added. Education Minister Dr. Abdullah Bin-Obaid commended the government for allocating the lion's share of the budget for education and manpower training. The sector received SR96.7 billion in the 2007 budget, which includes provision for building 2,000 new schools, four universities including a university for girls in Riyadh.
Health Minister Dr Hamad Al Manie said the Kingdom had reached 22nd position among countries in the world in health spending. Highlighting his ministry's efforts to promote health services across the country, he said, "We have already constructed 40 new hospitals at a total cost of SR1.9 billion. We are now in the process of receiving those hospital projects from contractors." Referring to the government's plan to establish advanced primary health care centres all over the Kingdom, he said the ministry has already signed contracts for 1,010 centres. It has signed another contract to set up a national health laboratory in Riyadh at a cost of SR114 billion.
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