World Tribune.com


Saudis budget more for social welfare

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.

Print this Article Print this Article Email this article Email this article Subscribe to this Feature Free Headline Alerts