Saudis budget more for social welfare
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Special to World Tribune.com
MIDDLE EAST NEWSLINE
Thursday, December 13, 2001
ABU DHABI Ñ Saudi Arabia says its fiscal 2002 budget will contain a
huge deficit and focus on social welfare rather on defense.
The Saudi government has passed a $53.9 billion budget that will contain
a deficit of $12 billion, or more than 20 percent of the spending plan.
Saudi officials said the kingdom would borrow the money to cover the
deficit. They said the borrowing would come from internal rather than
foreign sources.
Saudi leaders said the budget will again stress social programs. These
include education, health and social development projects.
"We were keen in this year's budget to finalize these projects by
allocating the necessary finances that would enable the implementation of
the plan on schedule and move more quickly toward achieving the desired
goals," Saudi Information Minister Fuad Al Farsi said.
The Cabinet allocated 710.6 million riyals [$246 million] to Saudi
military industries. Saudi companies are now included in most major
procurement contracts with Western defense firms.
The Cabinet, however, did not release the budget of the Defense Ministry
or the military.
But Gulf defense sources who monitor Saudi Arabia said Riyad's focus
would be to maintain the military and avoid big-ticket purchases. They said
the kingdom has delayed such purchases as a main battle tank, self-propelled
artillery and a jet trainer.
The sources said the kingdom would try to ensure that ongoing projects
continue and contractors are paid on time.
Officials said education was allocated 54.3 billion riyals [$14.6
billion] and health and social development 22.8 billion riyals [$6 billion].
This is a 1 billion riyal increase over last year.
The Saudi Finance Ministry issued a forecast that the gross domestic
product
will reach 615 billion riyals [$166 billion] in 2001, an increase of 2.2
percent from last year. The new budget freezes the civil service payroll.
"It is not allowed to appoint or promote employees and workers except
for approved jobs in the budget and according to stipulated regulations," a
Saudi statement said.
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