PUBLIC BUDGETING AND FlNANCIAL MANAGEML"'IT Vulwn. 4, Number 2. 1992 CONTENTS Annuunr...n'", I'8lterns and T... ds in BudM~1 Fonnal lnoo.ation Am0"ll LocoI Go...,..,...,lli..... 187 D. E O'Toole WId B, Slipak Oeducl"ll Bud,!:ota..,. PrioriIi.. ;" Saudi Arahia' T~ Impa,1 oidd'...~ Exponditura on Allo<atiom tu Sucio Economir Prog........................... 311 R, E. Loonry Bud~tta.,. TradeolT. Undw Tup.no"" and Bonum Up Budgrlillll 327 R Jlfndrict Tax IleIas in Stale and Loral Gu.ernrnml To SItu<1unI' Anal)"is....................................... D. G. Pudut St:lm:s ON INNOVATlOr\S IN STATE ANO LOCAL t'oilec.c>"ng ForOl><';ling 51.>1. Il. ~n..., E.pandinK Ihe Dimensiu... Dr Budgotary Fo"",,"-<u"I Il..,...,..,h........... 3S1 W E. Klay and G, A Grlwt In«nI,,'" r Forua<linl Itdonn Am<>nJ: Local f1na~ 0fIir<:n............................. 407 J. McCollough 0'1<11/. Frank 3S' MARCEL DEKKER, L,"C. N... Vurk, Ila.od, Ilun~ KU"ll Cunlrlhuliu... In Ihis juu"",l ani' puhlisl>o1l fre. nf,h"'1le
Report Documentation Page Form Approved OMB No. 0704-0188 Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to a penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. 1. REPORT DATE 1992 2. REPORT TYPE 3. DATES COVERED 00-00-1992 to 00-00-1992 4. TITLE AND SUBTITLE Deducing Budgetary Priorities is Saudi Arabia: The Impact of Defense Expenditures on Allocations to Socio-Economic Programs 5a. CONTRACT NUMBER 5b. GRANT NUMBER 5c. PROGRAM ELEMENT NUMBER 6. AUTHOR(S) 5d. PROJECT NUMBER 5e. TASK NUMBER 5f. WORK UNIT NUMBER 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) Naval Postgraduate School,Monterey,CA 8. PERFORMING ORGANIZATION REPORT NUMBER 9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSOR/MONITOR S ACRONYM(S) 12. DISTRIBUTION/AVAILABILITY STATEMENT Approved for public release; distribution unlimited 13. SUPPLEMENTARY NOTES 14. ABSTRACT 11. SPONSOR/MONITOR S REPORT NUMBER(S) 15. SUBJECT TERMS 16. SECURITY CLASSIFICATION OF: 17. LIMITATION OF ABSTRACT a. REPORT unclassified b. ABSTRACT unclassified c. THIS PAGE unclassified Same as Report (SAR) 18. NUMBER OF PAGES 10 19a. NAME OF RESPONSIBLE PERSON Standard Form 298 (Rev. 8-98) Prescribed by ANSI Std Z39-18
PUBLIC BUDGETING & FIN. MNGMT., 4(2), 311-326 (1992) Deducing BUdgetary priorities in saudi Arabia: The Impact of Defense Expenditures on Allocations to Socio-Economic programs by Robert E. Looney Professor, National Security Affairs Naval Postgraduate School Monterey, California 93943 USA Introduction The 1990 Saudi budget, set at just over that for 1989, and the 1990-95 five year plan, with spending targets on the current price equivalent of five times the 1990 budgetary figure, indicate fairly clearly that Saudi Arabia's days of priming the non-oil economy are essentially over, but that its commitment to price stability remains [Economist Intelligence Unit, 1990, p.4]. The five year plan has proposed growth targets averaging 3.2 percent a year between 1990 and 1995, roughly in line with what might be expected to be the population growth rate. The oil sector is expected to grow at a real rate of 2.7 percent a year, but the oil and gas sector combined by only 2.2 percent. The domestic nonoil economy is expected to grow at 3.6 percent. The overall growth rate in the non-oil sectors is likely to improve when the contraction in government services has flattened out. Over the medium term, the plan's spending targets suggest a very heavy bias towards defense, social services, and SUbsidies, with extra revenue to be used to rebuild reserves. As with the 1989 budget, the government's 1990 spending plans anticipate that increased overall revenues would reduce,the government's borrowing needs, eliminating the necessity for any further reductions in the country's foreign reserves. The intention of the budget is to increase the already large human resources development. To meet this objective, reductions in funding must be made in most other sectors. However, these cuts have been minimized in the areas of defense, administration, health and social development. The local subsidies section of the budget has been kept unchanged largely for political reasons to reflect King Fahd's promise to protect the living standards of low income Saudis [Economist Intelligence Unit, 1990, p.4]. 311 COPYrilht Cl1992 by!4ucei Dekk_. 1Dc.,