FISCAL AND MONETARY POLICIES
FISCAL POLICY
The goals of the Saudi fiscal policy during the sixth development plan 1995-1999 are the following:
- Achieving a positive GDP growth rate and creating new job opportunities.
- Sustaining the standard of living by maintaining a low rate of inflation that is below the rate of economic growth.
- Directing government expenditure towards the expansion and diversification of the Kingdoms economic base and improvement of public services.
MONETARY POLICY
The objectives of the Kingdoms monetary policy are:
- Maintaining stable prices in order to achieve sustainable economic growth.
- Sustaining the exchange rate of the Saudi Riyal in order to strengthen the Kingdoms balance of payments position.
- Securing stability of the banking system and enhancing its efficiency.
- Ensuring stability and systematic growth in the domestic and capital markets.
- Ensuring reasonable liquidity in the economy so as to avoid inflation and achieve balanced growth.