The Fiscal Sustainability Program is a medium-term fiscal planning mechanism committed to sustaining public finances and achieving a balanced budget for the Kingdom. Additionally, the program is also contributing to strengthening financial discipline and developing public finances through the establishment of several entities, including the Government Expenditure & Projects Efficiency Authority, the National Debt Management Center, and the Non-Oil Revenue Development Center.
Launched in 2016, the Fiscal Sustainability Program (formerly named the Fiscal Balance Program) is creating a strong and adaptable financial system and implementing the necessary structural fiscal reforms to ensure Saudi Arabia's long-term economic sustainability and credibility of public finances. The Program has also successfully reduced the Kingdom's deficit ratio of GDP from 15.8% in 2015 to 2.3% in 2021, and implemented structural reforms that improve the budget and its implementation.
Through building on the success of the Fiscal Balance Program and introducing new fiscal policies to ensure long-term fiscal sustainability, the program is taking steps to ensure that the annual budget is developed in a thoughtful and comprehensive approach, taking into account the economic and fiscal landscape for the next few years. This level of transparency and disclosure helps to build trust and confidence among citizens, and allows the Kingdom to make informed decisions about its financial future.
As a result of a boost in non-oil revenues, the Kingdom has made great strides towards achieving financial sustainability. These efforts are designed to improve the quality of financial planning, and help pave the way for a more stable and secure future for Saudi Arabia. This marks a significant turning point for the Kingdom, as it moves towards a new era of fiscal sustainability.