The Saudi Ministry of Finance estimates a total expenditure of SAR1,313 billion ($350.1 billion) and total revenues about SAR1,147 billion ($305.84 billion) in its pre-budget statement for the fiscal year 2026.

 

The statement projects a deficit of 3.3% of GDP, while confirming that the government will continue to adopt expansionary spending policies that are directed towards national priorities with social and economic impact, and in a way that contributes to achieving the goals of the Saudi’s Vision 2030, and diversifying the economic base, said a Saudi Press Agency report.

 

The Pre-Budget Statement noted that, since the launch of Saudi Vision 2030, the Saudi economy has witnessed structural reforms that have been reflected in the improvement of the business environment, enhancing the role of the private sector and helping move towards achieving the Sustainable Development Goals. 

 

Preliminary estimates for 2026 project growth in real GDP of about 4.6%, supported by the expected growth of non-oil activities.

 

The statement reports that the positive performance of non-oil activities and the continued implementation of supporting initiatives are estimated to lead to positive developments in revenues over the medium term, as total revenues are expected to reach about SAR1,147 billion in 2026, reaching about SAR1,294 billion in 2028, and total expenditures are expected to reach about SAR1,313 billion in 2026, reaching about SAR1,419 billion in 2028.

 

In addition, the Pre-Budget Statement predicted that the budget deficit will continue to be recorded in the medium term at lower levels to the estimated percentage for the year 2026, as a result of the government's continued adoption of expansionary and transformative spending policies, aimed at continuing the implementation of projects, programs and initiatives with economic and social returns, while maintaining financial sustainability.

 

The Pre-Budget Statement said the real GDP for 2025 is expected to register a growth of 4.4%, supported by the growth of non-oil activities, which is expected to register a growth of about 5.0% at the end of 2025, due to the continued growth of domestic demand.

 

The Pre-Budget Statement also noted that the government intends to continue local and international funding activities from public and private channels, through the issuance of bonds, sukuk and loans at a fair cost, in addition to expanding the government alternative funding activities via project finance, infrastructure financing, and through export credit agencies, during the year 2026 and the medium term.

 

Minister of Finance Mohammed Aljadaan stressed that the 2026 budget aims to consolidate the strength of the Kingdom's financial position, and ensure the sustainability of public finances, in parallel with supporting economic growth, by committing to maintaining development and social spending priorities, ensuring that structural reforms that enhance financial and economic efficiency and sustainability are moving forward. 

 

He also noted that the ratio of public debt to GDP is still at relatively low levels compared to many other economies, and that it is within safe limits compared to the size of the economy, and is supported by financial reserves, giving the Kingdom's fiscal policies the ability to balance the requirements of growth and sustainability, while maintaining flexibility to intervene in response to shocks or in the event of crises or emergency needs.