Saudi Arabia has affirmed its commitment to more prudent and strategic public spending as it approved the state budget for 2026, signalling a shift toward what officials describe as ‘wiser’ allocation of resources that supports growth while enhancing fiscal resilience.

The budget, which projects total expenditure of around 1.31 trillion Saudi riyals and a deficit of approximately 165 billion riyals, reflects a deliberate effort to balance development priorities with efficiency as part of the Kingdom’s broader economic transformation under Vision 2030.

Government leaders have emphasised that the 2026 fiscal plan represents a more mature phase of Saudi Arabia’s economic cycle, with increased focus on maximising the impact of spending rather than simply expanding budget outlays.

Finance officials have highlighted that while overall expenditures remain robust to support national infrastructure, social services and priority programmes, the scale of spending is being calibrated to enhance fiscal sustainability and reduce dependency on oil revenue volatility.

This approach is underscored by a reduction in the projected deficit relative to 2025 figures, signalling tighter control over fiscal outcomes.

A key element of the ‘wiser spending’ strategy is the prioritisation of sectors expected to generate sustainable economic value, including non-oil industries, logistics, technology and tourism, which are seen as vital to diversifying the economic base and creating jobs.

Non-oil activity is forecast to grow strongly, contributing to real gross domestic product expansion of about 4.6 per cent in 2026, buoyed by vibrant private sector performance and higher domestic demand.

Government messaging has stressed that spending will be aligned with long-term transformation goals, such as strengthening public services, improving quality of life and enhancing the business environment.

Officials have also underscored a disciplined approach to public finances, with projected revenues expected to rise modestly year-on-year and public debt maintained at manageable levels compared with many peers.

Crown Prince Mohammed bin Salman has directed government ministries to ensure that development and social projects remain at the heart of fiscal planning, while promoting efficiency and accountability in expenditure.

As Saudi Arabia continues to navigate global economic uncertainties and pursue structural reform, the emphasis on ‘wiser spending’ illustrates a nuanced fiscal strategy that seeks to fortify economic resilience and support inclusive growth across the kingdom.