Temperatures likely to hover over the 48-degree-Celsius mark in Abu Dhabi and 42 degrees Celsius in Dubai
The National Transformation Plan (NTP) aims to boost non-oil revenue to 530 billion riyals ($141 billion) by 2020, creating some 450,000 non-government jobs, according to comments by ministers and documents distributed to reporters in Jeddah.
The plan aims to "enhance the level and quality of services" provided by government and "achieve a prosperous future and sustainable development," it said.
The NTP, which includes over 500 projects and initiatives as well as performance indicators for ministries and other government agencies, will cost around 270 billion riyals to implement, the document showed.
Minister of State Mohammed Al Al Shaikh said the cost would have no impact on Saudi budget spending, and added that a further 300 billion riyals was expected to be contributed to NTP initiatives by the private sector.
The plan is part of a wider, long-term reform drive known as Vision 2030, which was announced by Saudi Arabian Deputy Crown Prince, Mohammed bin Salman bin Abdulaziz, who is also the Second Deputy Premier and Minister of Defence, in April. He aims to overhaul many aspects of Saudi Arabia's economy and society as the kingdom prepares for a future of shrunken oil revenues and a rising population.
The finances of the world's top oil exporter have been hit hard since the summer of 2014, when crude prices plunged, producing a state budget deficit of nearly $100 billion last year.
The plan aims to increase the percentage of government debt to gross domestic product to 30 per cent from 7.7 per cent now.
Under Vision 2030, new non-oil revenue is expected to come from the introduction of a value-added tax (VAT), "sin taxes" on sweet drinks and tobacco, and fees imposed on the private sector.
Al Al Shaikh said there were no plans to introduce income tax for citizens. The text of the plan proposed to spend 150 million riyals on preparing income tax for residents, a phrase normally applied to expatriates. Al Al Shaikh said the only tax commitment approved so far was for VAT and said that further questions on taxation should be addressed to the finance minister.
According to the NTP, the government will strive to reduce the value of public salaries and wages as a proportion of the budget to 40 per cent from 45 per cent by 2020, and cut water and electricity subsidies by 200 billion riyals.
The energy ministry aims to maintain its oil production capacity at 12.5 million barrels per day (bpd), raise gas output capacity to 17.8 billion standard cubic feet a day from 12 billion, and raise refining capacity to 3.3 million bpd from 2.9 million, the document said.
Saudi Arabia will also aim to install 3.5 gigawatts of renewable power capacity by 2020 and spend 300 million riyals on identifying locations for atomic electricity plants and preparing them for construction, the plan said.
An appendix to the plans listed spending targets for initiatives aimed at boosting both economic and social goals, including 4.7 billion riyals on improving hospital emergency rooms and intensive care units. Other spending included 2.1 billion riyals to restructure the postal sector, 5 million to set up an intellectual property authority, 8 million to improve civil service performance and 3.5 billion to maintain cultural heritage. - Reuters
Temperatures likely to hover over the 48-degree-Celsius mark in Abu Dhabi and 42 degrees Celsius in Dubai
‘We are not numbers, we are people’, says Yazan Al Bawwab
A young gamer said playing games has been more effective in helping him navigate difficult times than any therapy he has been administered
34-year-old medical tourist from Kenya underwent 'life-changing' advanced laparoscopic procedure at Abu Dhabi Hospital
Local banks keep reminding their customers through regular emails and messages about different frauds
Here's how residents can protect themselves from cyber attacks and strike a balance between oversharing online and simply sharing memories
Second-quarter GDP increases at a 2.8% rate
Mars has been in decline as refiners have been making less of a profit on narrower gasoline cracks