The Saudi Ministry of Finance today announced the Final Budget Statement for the State's General Budget for Fiscal Year 2026 (FY2026), projecting total expenditures of SAR 1,313 billion and total revenues of SAR 1,147 billion, with an estimated deficit of SAR 165 billion, representing around 3.3% of GDP.
The Budget Statement outlines the detailed figures for the FY2026 Budget in terms of revenues and their sources, expenditures and their allocation. It also reviews the main achievements and projects of government sectors during FY2025, as well as their targets and projects for FY2026. In addition, the report highlights key fiscal and economic developments in the Kingdom, which reaffirm the success of Saudi Vision 2030 economic transformation programs and initiatives as non-oil activities continued to record positive growth, while the government-maintained spending efficiency and fiscal sustainability over the medium- and long-term, reflecting the effectiveness of its fiscal policies in supporting Vision 2030 programs and promoting economic diversification.
His Excellency the Saudi Minister of Finance, Mr. Mohammed Aljadaan, expressed his sincere gratitude to the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince for their generous support, wise guidance, and diligent oversight that continue to drive prosperity for the Saudi economy and support the success of fiscal policies, ensuring optimal economic and social returns through the best utilization of the Kingdom's resources and strengths. He emphasized that citizens remain at the forefront of these efforts, with policies designed to meet their basic needs and enhance their quality of life.
He affirmed that the economic transformation journey continues towards greater diversification, innovation, and the investment in promising sectors, noting that the results achieved so far confirm the success of the economic and fiscal reforms aimed at fostering inclusive growth and enhancing public finance management, with a focus on improving the quality of services provided to citizens, residents, and visitors.
Minister Aljadaan stressed that the government is steadfast in its approach toward caring for citizens and their basic needs, as spending continues in the education, health, and social services sectors. Meanwhile, programs and projects continue to increase the quality of services, government facilities, and infrastructure development in various regions of the Kingdom, which contributes to improvements in the quality of life.
Minister Aljadaan highlighted that there is a constant focus on improving the social support and subsidies system while increasing its effectiveness and tangible, measurable impact. He also noted that the decline in spending on some sectors as reflected in the FY2025 and FY2026 estimates, is due to the completion of a number of projects in some sectors, the improvement in the efficiency of operating expenses, and the presence of non-recurring 2024 expenses for some sectors.
In addition, Minister Aljadaan affirmed that the Kingdom's medium-term financial planning process supports the third phase of the Vision 2030, which focuses on maximizing impact. He pointed out that the FY2026 Budget confirms the continuation of strategic spending on development projects in accordance with sectoral strategies and programs of Saudi Vision 2030. Also, spending in the Saudi Budget continues to prioritize economic diversification, business environment improvements, support exports, and the expansion of the scale and diversity of private sector investments.
Minister Aljadaan also reiterated that one of the government's key priorities is managing the fiscal deficit and implementing strategies for sustainable debt management, and noted that the government aims to continue local and international financing operations to cover the projected FY2026 deficit and repay due debt, while taking advantage of favorable market conditions to execute alternative financing operations that promote economic growth and support development and infrastructure projects. Minister Aljadaan expected public debt balance to reach SAR 1,457 billion in FY2025 (31.7% of GDP) and SAR 1,622 billion in FY2026 (32.7% of GDP), reaffirming that it is considered sustainable when compared to international standards.
The FY2026 Budget aims to maintain the Kingdom's strong fiscal position and enhance financial sustainability by maintaining public debt at sustainable levels and considerable government reserves to strengthen resilience against external shocks. The Budget Statement for FY2026 projects government reserves with the Saudi Central Bank (SAMA) to remain stable at around SAR 390 billion by the end of FY2026, which is at the same level as FY2025.
Minister Aljadaan said that the economic and structural reforms in the Kingdom have improved financial and economic indicators, demonstrating the completion of an important stage in enhancing economic diversification and financial stability. He explained that initial estimates in FY2025 indicate a 5.0% growth in non-oil activities GDP as a result of continuous growth of economic activities, as well as the expansion of investment and increased levels of consumption. Preliminary estimates for FY2026 indicate growth of real GDP of 4.6%, with non-oil activities as the main driver of economic growth.
On the global economy and its challenges, Minister Aljadaan noted that global growth remains slow amid uncertainty stemming from escalating geopolitical tensions and protectionist policies, including trade restrictions and tariffs, which deepen uncertainty about future growth. He added that global inflation is gradually declining, encouraging central banks worldwide to adopt less restrictive monetary policies by holding or gradually cutting interest rates to support economic activity. However, global debt continues to rise, placing a growing burden on fiscal sustainability, particularly in emerging and developing economies.
Minister Aljadaan concluded by reaffirming that the government's success in mitigating risks from geopolitical developments and limiting their economic and social impact underscores the strength and resilience of the Saudi economy, and emphasizes its ongoing commitment to fostering the growth and stability of the domestic and global economies.