RIYADH — Saudi Arabia posted actual revenues of SR263.62 billion and expenditures of SR322.3 billion in the first quarter of 2025, recording a deficit of SR58.7 billion, the Ministry of Finance has announced on Monday. The total revenues during the three-month period recorded a fall of 10 percent year-on-year. According to the quarterly budget performance report, revenues from oil stood at SR149.8 billion while non-oil revenues reached SR113.81 billion. This shows that the Kingdom continues its efforts to diversify its sources of income and enhance long-term financial sustainability. The budget reflects an increase in public spending as part of the Kingdom's plans to stimulate economic growth and continue implementing major projects under the Saudi Vision 2030. The ministry report showed that budget deficit in the first quarter, amounting to SR58.7 billion, is the largest since the fourth quarter of 2021. It is the tenth consecutive quarterly deficit, according to an analysis of Al-Eqtisadiah newspaper. This deficit comes as oil production continues to be cut by the OPEC+ alliance, coupled with lower average crude oil prices compared to the same period in 2024. The deficit came as oil production declined by one percent to 8.95 million barrels per day, according to OPEC. Brent oil prices also declined by 15 percent to $75 per barrel compared to the same period in 2024. This deficit resulted from a 10 percent decline in state revenues reaching SR263.6 billion, compared to a five percent increase in expenditures that stood at SR322.3 billion. The budget deficit for the first quarter of this year is 3.5 times higher than the deficit amounting to SR12 billion recorded in the same period last year. The decline in total revenues coincided with an 18 percent decline in oil revenues to SR150 billion, while non-oil revenues rose two percent reaching SR114 billion, according to the analysis. Despite the decline, government spending remains at high levels due to massive development projects and regional and sectoral strategies that drive sustainable economic growth. This is in addition to the social support system to protect citizens from the impact of local and global repercussions, support for imported essential goods and services, continued additional financial support in the Citizens Account program, and an increase in the basic minimum for calculating pensions for social security beneficiaries, apart from improving the level of public services provided to citizens and expatriates. Through its fiscal policies, Saudi Arabia seeks to achieve a balance between development spending and deficit management, while continuing to support non-oil sectors and stimulate investment, amid a volatile and challenging global economic environment. Taxes on income, gains, and capital gains amounted to SR6.7 billion, taxes on goods and services amounted to SR71.6 billion, taxes on international trade and transactions accounted for SR4.5 billion, in addition to other taxes amounting to SR25.4 billion. The Saudi Cabinet approved the 2025 budget, estimating expenditures at SR1.29 trillion and revenues at SR1.18 trillion, with a deficit of SR101 billion, representing 2.3 percent of the country's GDP. The Saudi budget recorded a deficit of SR115.6 billion in 2024, with revenues reaching SR1.26 trillion and expenditures amounting to SR1.37 trillion.
