Saudi Arabia has the capacity to deal with the coronavirus crisis and its impact on the economy, Finance Minister Mohammed Al-Jadaan has asserted.
The minister said the kingdom has gone through many crises and has managed to overcome by diversifying the economy, a Saudi Press Agency report said.
He added that the journey is still continuing, starting with a journey of financial control to control of the deficit and raising the efficiency of spending. All these factors help the government to face these shocks, but in the end the resources in any country remain limited and the government must work to use these resources to achieve the best possible result, he said.
The minister said the Kingdom has a clear strategy for managing its public debt and pointed out that debt issuance for this year may reach SR220 billion ($58.5 billion), SR100 billion more than the SR120 billion previously announced.
It would draw down a maximum of $32 billion from reserves to help bridge the budget gap, he said.
On the measures to reduce spending in the public sector or development projects, the minister referred to the announcement by the government several weeks ago on measures to redistribute government spending to ensure that it is spent on the most necessary needs, especially in light of this crisis, and in a manner that ensures achieving the greatest benefit of the citizens.
The Minister of Finance said the government is currently considering any additional measures to reduce government expenditures in accordance with existing precautionary measures.
The minister said the Saudi economy is currently facing a set of challenges, which include the Coronavirus pandemic and its huge effects on the economy; the decline in revenues as a result of this pandemic related to government non-oil revenues; and oil sector downturn.
He said these challenges and emerging ones require verifying the way of spending in a way that can overcome these challenges, while the government remains committed to providing all the resources necessary to protect citizens and ensure their health.
The minister said government is committed to provide real support to the private sector and its institutions, especially the most affected ones.
