Saudi Arabia Approves 2026 Budget, Projects Around $306 Billion in Revenues Amid Continued Deficit
Riyadh expects 1.147 trillion riyals in income against 1.313 trillion riyals spending, sustaining a fiscal gap as part of its Vision 2030 reform strategy.
Saudi Arabia’s government has formally approved its 2026 budget, forecasting total revenues of about 1,147 billion riyals — roughly $306 billion — while setting expenditure at approximately 1,313 billion riyals.
The figures imply a budget deficit of around 165 billion riyals (about $44 billion), or roughly 3.3 percent of gross domestic product.
The budget continues the kingdom’s approach of running a “deficit by design,” with spending focused on strategic initiatives intended to accelerate long-term economic diversification under Saudi Vision 2030. Finance officials state the gap reflects policy choices to maintain robust infrastructure, social and development investment even amid volatile oil revenues.
While total revenues rise modestly from previous estimates — aided by gains in non-oil sectors, taxation and improved economic activity — spending remains substantial.
Capital expenditure and public procurement account for a major portion, as Riyadh seeks to sustain infrastructure projects and social programmes.
Officials emphasise that public debt remains low by international standards and is supported by healthy foreign-exchange reserves, safeguarding fiscal resilience against external shocks.
Economic forecasts accompanying the budget show real GDP growth expected at about 4.6 percent in 2026, driven predominantly by expansion in non-oil activities.
Government planners flag the medium-term outlook as stable: revenues are projected to climb toward 1,294 billion riyals by 2028, even as spending gradually rises — maintaining flexibility without compromising long-term fiscal sustainability.
The 2026 budget signals that Saudi Arabia remains committed to the structural transformation outlined in Vision 2030 — leveraging strategic public spending to support diversification, attract private investment and sustain growth even in the face of global economic uncertainty.
The figures imply a budget deficit of around 165 billion riyals (about $44 billion), or roughly 3.3 percent of gross domestic product.
The budget continues the kingdom’s approach of running a “deficit by design,” with spending focused on strategic initiatives intended to accelerate long-term economic diversification under Saudi Vision 2030. Finance officials state the gap reflects policy choices to maintain robust infrastructure, social and development investment even amid volatile oil revenues.
While total revenues rise modestly from previous estimates — aided by gains in non-oil sectors, taxation and improved economic activity — spending remains substantial.
Capital expenditure and public procurement account for a major portion, as Riyadh seeks to sustain infrastructure projects and social programmes.
Officials emphasise that public debt remains low by international standards and is supported by healthy foreign-exchange reserves, safeguarding fiscal resilience against external shocks.
Economic forecasts accompanying the budget show real GDP growth expected at about 4.6 percent in 2026, driven predominantly by expansion in non-oil activities.
Government planners flag the medium-term outlook as stable: revenues are projected to climb toward 1,294 billion riyals by 2028, even as spending gradually rises — maintaining flexibility without compromising long-term fiscal sustainability.
The 2026 budget signals that Saudi Arabia remains committed to the structural transformation outlined in Vision 2030 — leveraging strategic public spending to support diversification, attract private investment and sustain growth even in the face of global economic uncertainty.
