Saudi Arabia's Total Expenditure Reaches 1.39 Trillion Riyals, with Total Revenue at 1.2 Trillion
The Saudi Ministry of Finance announced the preliminary statement of the general state budget for the fiscal year 1448/1449 (2027), which projected total expenditures of approximately 1.39 trillion riyals and total revenues of around 1.2 trillion riyals, resulting in a deficit estimated at about 3.6% of GDP. This outlook reflects a fiscal approach that balances supporting economic growth with continuing to implement developmental priorities and maintaining public financial sustainability.
The statement noted that the Saudi economy has continued to benefit from the economic reforms undertaken by the Kingdom since the launch of “Saudi Vision 2030.” These reforms have contributed to diversifying the economic base, improving the business environment, and enhancing the role of the private sector. This has been reflected in the performance of non-oil activities and their continued contribution to supporting economic growth, as well as in strengthening the resilience of the Kingdom’s economy against shocks.
It is expected that the continued implementation of economic diversification initiatives and reforms will support revenues in the medium term. Total revenues are projected to reach approximately 1.2 trillion riyals in 2027, rising to around 1.35 trillion riyals in 2029. These initiatives have helped increase non-oil revenues from approximately 166 billion riyals in 2015 to 505 billion riyals in 2025, thereby enhancing the stability and sustainability of public revenues. Meanwhile, total expenditures are estimated to reach approximately 1.39 trillion riyals in 2027, rising to around 1.54 trillion riyals in 2029, amid continued spending on developmental and strategic priorities and projects with economic and social returns.
Projections indicate a budget deficit for 2027 of approximately 3.6% of GDP, within the framework of a fiscal policy based on long-term financial planning and the maintenance of financial sustainability. This approach enables the government to adopt balanced fiscal policies across economic cycles to support economic growth and continue implementing priority projects that achieve the targets of “Saudi Vision 2030.”
Conversely, economic and geopolitical developments during 2026 affected the pace of economic growth in the Kingdom. Preliminary estimates indicate a decline in real GDP by 3.6%, attributed to oil sector activities, which are expected to contract by 21.8%. In contrast, positive growth rates are expected to continue in non-oil activities at 3.2%, helping to mitigate the impact of the decline in oil sector activities.
The statement reviewed key economic indicators for 2026, which showed non-oil activities growing by 1.8% in the first half of the year, with their contribution to GDP rising to historic levels of 57.3% during the same period, supported by strong domestic demand and private investment inflows. Additionally, preliminary forecasts indicate that inflation will rise to approximately 2.1% for the full current year, while the unemployment rate among Saudis decreased to 6.5% in the second quarter of 2026.
The statement clarified that the government intends to continue domestic and international financing operations in accordance with the medium-term debt strategy framework, through public and private channels by issuing bonds, sukuk, and loans at fair costs. Furthermore, it plans to expand alternative government financing through project financing, infrastructure financing, and export credit agencies during 2027 and the medium term.
For his part, Minister of Finance Mohammed bin Abdullah Al-Jadaan confirmed that the preliminary estimates for the 2027 general state budget come amid a global economic environment characterized by persistent uncertainty and accelerating geopolitical developments. He noted that the Kingdom continues to manage its public finances from a long-term perspective, enhancing its capacity to handle changes and continue spending on developmental and strategic priorities while maintaining public financial sustainability and the strength of its financial position.
He added that the government remains committed to monitoring economic and geopolitical developments and assessing their potential impact on the global economy, supply chains, and energy markets, addressing them with flexible and proactive policies that support the economy and enhance its ability to continue achieving the targets of “Saudi Vision 2030.”
He also emphasized that the government seeks to continue implementing economic transformation plans that support growth and expand the economic base, which will be reflected in the growth of non-oil revenues and contribute to achieving more sustainable and stable revenue levels in the medium and long term.
He explained that the estimated deficit in 2027 is part of a fiscal policy aimed at maintaining the strength of the Kingdom’s financial position and enhancing financial sustainability, thereby supporting growth, adapting to changes, managing crises, and addressing emergency needs. This will be achieved by maintaining sustainable levels of public debt and considerable financial reserves.
Notably, the issuance of the preliminary statement marks the ninth consecutive year of presenting preliminary data, demonstrating the Saudi government’s ongoing efforts to enhance transparency in public financial performance and strengthen financial disclosure, keeping citizens, investors, and stakeholders informed about the most significant economic developments and public financial estimates for the coming year and the medium term.
