Saudi Arabia ranked seventh worldwide in the index of "Efficiency of Government Spending," according to World Economic Forum (WEF).
The index is one of the sub-reports of the Global Competitiveness Report 2017-2018 issued by the forum in Davos, Switzerland.
Saudi Arabia preceded countries such as the Netherlands, Norway, United Kingdom, Sweden, Japan, China, India, France, Russia and other advanced and major countries.
In one year, Saudi Arabia advanced five positions from 12th place to seventh in 2018. The report covers the economies of 136 countries classified through 114 indicators listed in 12 main axes: infrastructure, education, health, innovative labor market efficiency and others.
Saudi Arabia’s rank among the top 10 countries in the index reflects the Saudi government's vision to increase the efficiency of spending to serve the vital sectors in the Kingdom, under the supervision of head of Council of Economic and Development Affairs in achieving the objectives of Vision 2030.
Saudi Arabia scored 5.3 points out of 7, the highest efficiency rank of the index, after UAE which scored 6.2, Singapore which scored 6.1, US which scored 5.9 and Germany 5.4 points. In the same index, Saudi Arabia topped New Zealand which scored 5.3, Switzerland which scored 5.3 and Luxembourg scored 5.0.
The Global Competitiveness Report issued by World Economic Forum is one of the most prominent global reports that annually monitor the performance and competitiveness of world economies in terms of strengths and weaknesses and their impact on their population’s standard of living, prosperity and well-being.
The report has been issued since 1971, with the goal of supporting countries in identifying the problems facing sustainable economic growth and developing strategies for poverty reduction and prosperity. It is considered one of the reports that provides a comprehensive assessment of the strengths and challenges of the economies of states.
Achieving budgetary balance is one of the specific goals of Vision 2030; and the Transformation Program (NTP) also commits to strengthening financial governance, increasing non-oil revenues and improving spending on programs and projects.
The Fiscal Balance Program will be a key component in developing a more effective government, by providing intense scrutiny of government finances and acting as a spur to increased efficiency.
The Program has set ambitious goals requiring significant changes in the fiscal policy. Thus, the following four strategic pillars have been identified:
1. Laying the foundations of financial accountability in all government entities by allocating a budget consistent with the strategic priorities of these entities, and establishing a system promoting accountability and full ownership of financial targets across all entities.
2. Fiscal and Macroeconomic Planning directing the fiscal policy towards achieving fiscal and economic sustainability and enabling efficient decision-making process for budget management while providing an integrated picture of debts and reserves.
3. Maximizing Government Revenues by creating a portfolio of revenue initiatives necessary to achieve the fiscal balance objectives.
4. Improving Government Spending Efficiency through optimal utilization of state resources.
