Saudi Arabia is forecasting total revenues of SAR1.184 trillion ($315.5 billion) for 2025, with expenditures expected to reach SAR1.285 trillion ($342 billion).
This would result in a projected deficit of SAR101 billion, driven by expansionary spending policies to support economic growth, according to the preliminary budget statement.
The economy is anticipated to grow by 4.6%, a rise from just 0.8% in 2023, with non-oil sectors expected to expand by 3.7%.
Finance Minister Mohammed Al-Jadaan reiterated the commitment to increase spending on essential services and execute strategic projects. He stated that the positive economic outlook reflects Saudi Arabia’s dedication to its ambitious plans.
For the current year, the Kingdom expects revenues and expenditures of SAR1.23 trillion and SAR1.35 trillion, respectively, which could lead to a deficit of SAR118 billion.
According to the preliminary budget statement from Saudi Arabia’s Ministry of Finance, total revenues for the fiscal year 2025 are expected to be around SAR1.184 trillion, rising to about SAR1.289 trillion by 2027.
Total expenditures for 2025 are estimated at approximately SAR1.285 trillion, increasing to around SAR1.429 trillion by 2027.
The statement highlighted that, due to ongoing economic developments and various financial initiatives, Saudi Arabia expects a budget deficit of about 2.3% of GDP for the fiscal year 2025. This deficit is part of efforts to improve stability and sustainability in the state budget.
It noted growth in GDP, primarily driven by non-oil sectors, which have bolstered industries like tourism, entertainment, transportation, logistics, and manufacturing.
This growth has improved quality of life, supported the private sector, and lowered unemployment to historic lows, positively impacting forecasts from international organizations and credit rating agencies.
For 2024, the report projects a real GDP growth rate of 0.8%, with non-oil sectors expected to grow around 3.7%.
Recent drops in interest rates are likely to boost demand and further support economic growth. Preliminary estimates also suggest that inflation could reach about 1.7% by the end of 2024.
