Saudi Arabia budget issues

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Saudi Arabia budget issues(budget in Riyal and dollar,BPC or budget per capita, GDP per capita, budget size index and economic efficiency)

neither US, nor god can help Saudi Arabia if…

Governance challenges in Saudi Arabia (Saudi Arabia governmental weight index analysis)

13. Saudi Arabia budget in national currency had big fluctuates in last years. Because of their commitment to save national currency worth against US dollar, their budget swing was fully being consistent with their national income in dollar. In 2018 Saudi Arabia national budget in Riyal was 894 billion, which it had 43% growth in comparison to previous year (2017) and 39% decline in comparison to 2012. In 2012 Saudi Arabia budget revenue was 1,274 billion. When we look at the Saudi Arabia budget revenue, this is obvious that their swing had vital relation to oil prices. It shows the vulnerable point of Saudi Arabia is oil and its related industries. The present situation make some dependency to Saudi Arabia oil and instead Saudi Arabia dependency to foreign products and services.  More than of 85% Saudi exports related to oil and its products (like polymers).

14. Because of Saudi Arabia Riyal worth stability against dollar, their budget revenue in dollar had similar fluctuations with their budget in national currency in last 2 decades. In many times this is lead to control of their inflammation, but it had straight effect on internal services from government side. In 2018 their budget in dollar was 238 billion dollar,  which it had 43% growth in comparison to 2017 and 39% decline in comparison to 2012. As we said and everyone know it, in 2012 all the oil countries located in high point of national income and it was never happening in rest.

15. BPC or budget per capita in Saudi Arabia, along with their budget fluctuation had big swings. But we should know on BPC, in addition to national income, the other component like population had important role. For instance, Saudi Arabia budget revenue in 2018 had 43% growth in compare to previous year, but their BPC growth in same time had 41% growth. The population effect when the budget had down flow, had double effect. By attention to this realities we can see that Saudi Arabia BPC had 57% downfall in comparison to 2012 and if we compare BPC downfall with budget downfall in same time, this is obvious that BPC downfall was bigger about 18%. BPC of Saudi Arabia in 2018 was 7,159 dollar and it was in 2017 equal to 5,056 dollar.  Their BPC in 2012 was 11,273 dollar and in lowest point of past years, it was 2,505 dollar in 2002. We should know in war time most of BPC amount belong to any military issues and real amount of BPC that pay for people is very lower than of present number.

16. B index or budget size index that shows BPC amount interspace with best and reasonable amount of BPC that belong to welfare states, had huge fluctuation in Saudi Arabia.  It was in 2018 equal to 35 of 100, which it is equal to their B index in 2000. Their best amount of B index on the figures happened in 2012, which it was 24 of 100. This is obvious that they had not any progress in welfare issues and services over the 2 past decades. It shows the population gap still has exist in Saudi Arabia and even it will be come to tragedy in next decades.

17. The analyzing of efficiency among the people and government shows in last years A: population efficiency after 2014 had ideal growth and this is raised from their new view to non-oil economy.  Population efficiency in 2018 was 3.24, which in comparison to 2000 it had 13% growth.  But in comparison to 2014 it had 42% downfall. At now they have decline flow.  B: government efficiency in 2018 was 0.28, which it had 60% Fallen in comparison to previous year. Their high point of government efficiency was happen in 2012, which it was equal to 0.50 on that year.

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Maysam Araee Daronkola


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