(Repeats without any changes to the text) Dec 20 (Reuters) - Following are highlights of Saudi Arabia's 2018 state budget, released on Tuesday.
BUDGET FORECASTS 2018 - King Salman says state budget will be the largest in the kingdom's history. - Saudi 2018 state budget spending to be 978 billion riyals ($261 billion). - Saudi 2018 state budget projects revenue of 783 billion riyals. - Saudi Arabia projects 2018 non-oil revenue at 291 billion riyals, oil revenue at 492 billion riyals. - Saudi 2018 state budget projects deficit of 195 billion riyals or 7.3 percent of gross domestic product (GDP). - Public debt projected at 555 billion riyals or 21 percent of GDP.
2017 - Saudi Arabia records actual state budget deficit of 230 billion riyals or 8.9 percent of GDP. - Saudi Arabia records actual expenditure at 926 billion riyals. - Saudi Arabia records actual revenue of 696 billion riyals. - Saudi Arabia records 2017 non-oil revenue of 256 billion riyals, oil revenue 440 billion riyals. - Public debt 438 billion riyals or 17 percent of GDP TOTAL GOVERNMENT SPENDING - Plan is built on three pillars: the budget, the Public Investment Fund (PIF) and the new National Development Funds. These three elements combine to fund 1.11 trillion riyals in government spending. - PIF to contribute 83 billion riyals in mega-infrastructure, real estate and transportation projects. - National Development Funds are worth 50 billion riyals (32 billion riyals for housing) and there is 22 billion riyals of stimulus for private sector, small-and-medium enterprises (SMEs), exports, efficiency and technology sectors.
ECONOMIC GROWTH - Saudi Arabia forecasts economy to grow 2.7 percent in 2018, non-oil sector growth projected at 3.7 percent. - The economy contracted 0.5 percent in 2017, while non-oil sector grew 1.5 percent.
COMMENTS - Saudi Arabia's crown prince Mohammed Bin Salman says 2018 budget is evidence of economic success despite low oil prices.
- Saudi central bank governor Ahmed al-Kholifey says no intention to change exchange rate policy. - He says he expects inflation to return to normal levels next year after energy prices rise and valued-added tax (VAT) is introduced; this year saw deflation. - "We have for the first time a comprehensive public spending plan to deliver improved living standards of the citizens and stimulate the private sector to generate more jobs," Finance Ministry says in a statement. - We need to address short-term economic growth pressure on the economy, says the ministry. - Policy-, not target-led approach means Fiscal Balance Programme, the scheme to bring the budget into balance, now runs to 2023 to reduce any impact economic on economic growth in medium term. Earlier target was 2020. - Deficit will be covered by the transfer of state financial reserves plus loans and the issuance of bonds and sukuk inside and outside the kingdom.
(Reporting by Reem Shamseddine and Dubai Newsroom)