We are in a race against time to achieve the Kingdom's vision 2030, Prince Mohammed bin Salman announces 5 Riyadh

  • 2/5/2023
  • 13:38
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Q: Was the allowances' sum greatly affecting (the budget) to the degree of stopping them? A: When we watch oil price slumps to about $27 per barrel and lasts for months-long under $40 barrier, we don't know which scenario will prevail, in the next coming 3 to 4 years and we don't know whether our endeavor to reach an oil (reduction) agreement will succeed or fail and we do not know whether our non-oil revenues' programs will succeed or not and we did not know whether our investments will yield, in a short term, or we will not be able to make profits that would help the public budget, in the short run. Hence, we decided not take a risk that might be at the expense of the national economy. Such an action has been done before. It has been done in the 80s and in 97. But, the difference between the two periods is that we have undergone through few months to return to normalcy, while in the past cases, in our history and other nations' histories, it takes a lot of years to return to normalcy. Q: I meant was the sum so crucial in supporting the (budget)? A: No doubt. If you want to cork the bluffs, you must take all necessary measurements, till you apprehend that your house is set in order. Then you begin unleashing, in a proper way. Q: How would you comment on some Western reports claiming that the decision to revoke, was due to public pressures, calling it a set-back? A: That's not true. The deficit has decreased, in the 1st quarter to 44%, this is sufficient to prove that we are right. The budget deficit is decreasing than what we envisioned, then why should we keep adopting austere measurements? Q: What are the main factors that led to bringing down the deficit to only 44%? In your opinion? A: 1 - Oil revenues, above all, as a result of the accord to reduce oil production. 2 - Non-oil revenues, due to some measures taken, during the last two years. 3 - Returns of the Public Investments' Fund, for the first time state coffers have received tens of billions per annum, in 2015 and 2016, respectively, and in 2017 and in the increase. These are the main factors that pushed down the deficit to only 44% lesser than the previous estimate. -- more 23:20 LOCAL TIME 20:20 GMT www.spa.gov.sa/w391578

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