Saudi Arabia's budget recorded revenues of 338.8 billion riyals ($90.3 billion) in the second quarter of 2026, up 12% from the same period last year, driven by growth in both oil and non-oil revenues. Expenditures totaled 373.1 billion riyals ($99.5 billion), resulting in a budget deficit of 34.3 billion riyals ($9.1 billion).
The Ministry of Finance's quarterly budget performance report, released Thursday, showed that oil revenues rose 22% year on year during the second quarter to 185.1 billion riyals ($49.4 billion), compared with 151.7 billion riyals ($40.5 billion) in the same period of 2025. Meanwhile, non-oil revenues increased 3% to 153.7 billion riyals ($41 billion).
The strong second-quarter performance lifted Saudi Arabia's total revenue for the first half of the year to 599.8 billion riyals ($159.9 billion), a 6% increase from 565.2 billion riyals ($150.7 billion) in the corresponding period last year.
Oil revenues accounted for approximately 329.8 billion riyals ($88 billion) of total first-half revenue, up 9%, while non-oil revenues reached 269.9 billion riyals ($72 billion), an increase of 2%.
Within non-oil revenues, taxes on goods and services rose 5% to 154.1 billion riyals ($41.1 billion), while taxes on income, profits, and capital gains increased 2% to 20.9 billion riyals ($5.6 billion). By contrast, taxes on international trade and transactions fell 13% to 10.3 billion riyals ($2.8 billion).
Spending Growth
On the expenditure side, second-quarter spending increased 11% to 373.1 billion riyals ($99.5 billion), compared with 336.1 billion riyals ($89.6 billion) in the same period of 2025.
Capital spending on non-financial assets rose 16% to 46.2 billion riyals ($12.3 billion), while employee compensation increased 3% to 144.4 billion riyals ($38.5 billion). Financing costs climbed 41% to 16.8 billion riyals ($4.5 billion), and social benefits rose 8% to 42.5 billion riyals ($11.3 billion).
During the first half of the year, total spending reached 759.8 billion riyals ($202.6 billion), up 15% year on year, resulting in a cumulative deficit of 160 billion riyals ($42.7 billion), after the first-quarter deficit reached 125.7 billion riyals ($33.5 billion).
The data show that high levels of spending continued to be directed toward priority sectors. Health and social development received 170.6 billion riyals ($45.5 billion) during the first half of the year, equivalent to 66% of its annual allocation. Military spending totaled 124.6 billion riyals ($33.2 billion), while education spending reached 109.7 billion riyals ($29.3 billion). Spending on economic resources also increased 24% from the same period a year earlier to 56.5 billion riyals ($15.1 billion).
Public Debt
According to the report, the entire first-half deficit of 160 billion riyals was financed through borrowing, with no withdrawals from government reserves. The balance of the state's general reserve stood at 399.1 billion riyals ($106.4 billion) at the end of the period, while the current account balance reached 39.9 billion riyals ($10.6 billion).
Outstanding public debt rose to approximately 1.685 trillion riyals ($449.3 billion) at the end of the first half, compared with 1.519 trillion riyals ($405.1 billion) at the beginning of the period. As of the end of June, the debt consisted of approximately 1.06 trillion riyals ($282.7 billion) in domestic debt and 624.9 billion riyals ($166.6 billion) in external debt.
Saudi Arabia's 2026 budget projected annual revenues of approximately 1.147 trillion riyals ($306 billion) and expenditures of 1.313 trillion riyals ($350.1 billion), with an expected deficit of 165.4 billion riyals ($44.1 billion).
