Saudi Arabia increases infrastructure spending in 2017

22 December 2016

Actual spending on infrastructure and transportation was SR37bn in 2016

Riyadh expects to almost double its public spending on infrastructure and transport, according to the 2017 state budget, which was announced on 22 December.

In the 2017 budget, Saudi Arabia’s Ministry of Finance said that it will increase spending on infrastructure and transport to SR52.1bn, compared with SR30bn allocated in last year’s budget.

The announcement will be welcomed by contractors across the kingdom that have struggled with limited public spending on key infrastructure schemes required to deal with a growing population.

Actual spending on infrastructure and transportation only reached SR37bn in 2016. Many working in the kingdom will be hoping for this number to be doubled.

Other allocations of funds announced in the budget included increases in municipal services, economic resources and military spending.

Municipal services will be allocated SR37.9bn in 2017, compared with SR34.6bn in 2016. Economic resources meanwhile will be allocated SR47.2bn, compared with SR36.7bn in 2016.

Military spending is set to increase slightly from an initial allocation of SR179bn in 2016 to SR190bn in 2017. Actual spending on the military however reached SR205bn as the kingdom’s war in Yemen stretches into its second year.

Spending on education on the other hand is set to decrease from SR207bn in 2016 to SR200bn in 2017. Actual spending on education reached SR205bn in 2016. 

Budget for the Fiscal Year 2017
SectorProjected Expenditures (after distributing allocated budget) for the current fiscal year 2016 (SAR thousands )Actual Expenditures for the current Fiscal Year 2016 (SAR thousands)Projected Expenditures for the fiscal year 2017 (SAR thousands)
Public Administration28,463,91626,770,10726,716,039
Security and Regional Administration102,395,439100,626,98796,687,000
Municipality Services34,686,60324,960,54347,942,215
Health and Social Development124,835,481101,435,223120,419,691
Economic Resources36,797,91938,248,00947,260,814
Infrastructure and Transport30,827,31437,584,06052,164,000
Public Programmes Unit95,750,06584,452,609107,626,685
Source: Saudi Arabia’s Ministry of Finance   


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