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2h ago

Saudi Arabia Approves 2026 Budget With $350 Billion Spending and $44 Billion Deficit

Officials cast the shortfall as a deliberate lever to finance Vision 2030 projects.

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The government will maintain spending as long as the economic return exceeds the borrowing cost, Jadaan said
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Overview

  • At a Cabinet session chaired by Crown Prince Mohammed bin Salman, the government approved SR1.313 trillion in spending and SR1.147 trillion in revenue, projecting a SR165.4 billion deficit equal to about 3.3% of GDP.
  • Finance Minister Mohammed Al-Jadaan said the deficit and continued borrowing are strategic tools intended to generate returns greater than borrowing costs.
  • The plan prioritizes Vision 2030 programs including giga-projects, infrastructure upgrades and core public services, with ministries directed to deliver against those goals.
  • Official forecasts for 2026 call for 4.6% real GDP growth, roughly 5% non-oil expansion and inflation easing to about 2%.
  • Public debt is projected to rise to around SR1.62 trillion (about 33% of GDP) as Riyadh keeps tapping debt markets, with external analysts noting exposure to weaker oil-price scenarios.