Saudi Arabia’s 2018 budget envisages a capital expenditure of SR205 billion ($54.66 billion) or 21 per cent of total expenditures, 13.6 per cent higher than 2017. The capital expenditure ratio to total government expenditure is projected to reach 22 per cent in 2020, up from 19 per cent in 2017. While public expenditure growth is expected to average 4.3 per cent for the period 2018-2020, the growth of capital expenditure over the medium term is expected to average higher at 8.3 per cent, in order to drive economic activity and generate job opportunities, the Finance Minister said in his budget proposals. Total expenditures in 2018 are estimated at SR978 billion, increasing by 5.6 per cent over 2017 projections. This increase is due to the rise of operational expenses and capital expenditures incurred as a result of spending on the initiatives of the Saudi Vision Realization Programs. Some of this is the Citizen Account Program, that has been launched to offset any adverse impacts that may arise from the implementation of certain financial measures, including adjustments to prices of energy. The Expenses for various sectors envisaged in the budget are as follows: Public Administration: SR26 billion in 2018 budget is earmarked for Public Administration, covering the budgets for projects and new programs for initiatives. The funding is intended to help implement the initiatives of Vision 2030 Realization Programs, which are related to the Ministries of Justice, Haj and Umrah, and Civil Service. These initiatives aim to enhance the performance of these ministries and achieve efficient and effective utilization of accessible resources in order to maximize the quality of outputs. Infrastructure and Transportation: SR54 billion is allocated for Infrastructure and Transportation, including the budget for projects and initiatives with an overall cost of SR21 billion to develop roads, ports, railways, airports, housing, communications and information technology, postal services, the industrial cities of Jubail and Yanbu, Ras Al-Khair Industrial Mining, and Jazan City, for primary and downstream Industries. Economic Resources: SR105 billion is allocated for Economic Resources and Public Programs, of which SR42 billion is allocated for programs and projects of initiatives related to the Saudi Vision 2030 Realization Programs. The sector’s budget also encompasses new projects and increases in costs of existing projects centered around the Saudi Vision 2030 Realization Programs. Further, the budget covers projects to provide drinking water and develop water resources. The projects budgeted also include sanitation services provision, dams construction, wells drilling, water leak detection and rectification, water and sewerage networks upgrade, water and electricity consumption rationalization, renewable energy promotion, efficiency and performance enhancement for desalination plants, infrastructure development for industrial cities, and the establishment of new silos and mills, in addition to the expansion of existing ones. Municipal Services: SR53 billion is allocated to the Municipal Services, including the Ministry of Municipal and Rural Affairs, municipalities, and development commissions for regions and cities, of which SR5 billion is allocated to the initiatives of Saudi Vision 2030 Realization Programs. The sector’s budget covers expenses of ongoing development projects, including public transportation projects. It also contains building new intersections, tunnels, and bridges for some roads and streets inside cities, as well as developing existing ones, to solve traffic jams. Furthermore, the budget covers projects of asphalt road pavement, road lighting, storm drainage and flood control, equipment and machinery provision, waste disposal, marsh filling, coastline development, and administrative buildings and parks upgrade. Education Sector: SR192 billion is allocated to the public and higher education and workforce training. This budget includes allocations of SR5 billion for a number of initiatives of Saudi Vision 2030 Vision Realization Programs and projects. The sector’s budget embraces implementing new projects and expanding existing ones, including educational facilities and schools for all educational stages for boys and girls across different regions of the Kingdom of Saudi Arabia; labs; and infrastructure of universities and training institutes and colleges. The budget also covers the renovation of existing facilities of schools, universities, and training institutes and colleges. The total cost of initiating new projects and expanding existing ones is SR4 billion, most of which are for implementing initiatives. Security and Regional Administration: SR101 billion is allocated for Security and Regional Administration. The sector’s budget includes allocations for new projects and the expansion of ongoing ones, with a total cost of SR12.6 billion. The funding aims to provide security requirements incorporating facilities, supplies, equipment, weapons, and ammunition. Military: SR210 billion is earmarked for the military. The sector’s budget includes allocations of SR10.2 billion for new development programs and projects covering building advanced systems and capacities. In addition, SR3.5 billion is allocated for military education, covering military colleges and King Saud bin Abdulaziz University for Health Sciences. Moreover, SR26.5 billion are designated for military medical services besides allocations for development initiatives that embrace developing weapon and defense systems, improving military readiness, reinforcing capabilities, increasing performance efficiency, updating strategic planning mechanisms, developing military bases, supporting the nationalization of military industry, and developing accommodation and service facilities. The sector’s budget also incorporates salaries and wages of military personnel. Health and Social Development: SR147 billion is allocated to the sectors of health services and social development, of which SR33 billion are for the initiatives of Saudi Vision 2030. The sector’s budget also accounts for completing the construction and equipment of hospitals and primary healthcare centers in all regions of Saudi Arabia. 36 new hospitals with a total capacity of 8,950 beds are currently being established and developed in all regions of the kingdom. Two medical cities with a total capacity of 2,350 beds are also being constructed. General items: A total of SR89 billion is allocated for General Items. The budget includes the government’s contributions to Public Pension Agency and General Organization for Social Insurance, subsidies, cost of debt, and contingent expenses.