Latest news with #SR149.861
Time of India
31-07-2025
- Business
- Time of India
Saudi Arabia's Q2 2025 budget: Non-oil revenues jump 7%, now nearly half of all government income
The non-oil revenue growth helped soften the blow of a 29% drop in oil income, easing pressure on Saudi Arabia's Q2 2025 budget deficit/ Image: Saudi Arabia Ministry of Finance In a significant financial development for Saudi Arabia, non-oil revenues in the second quarter of 2025 rose sharply by 7 percent, reaching SR149.861 billion ($39.9 billion). This increase, up from SR140.602 billion ($39.5 billion) in Q2 2024, reflects the ongoing momentum in the Kingdom's economic diversification strategy under Vision 2030. For the first time, non-oil revenues contributed to 49.7 percent of total quarterly income, nearly half, underlining the growing strength of alternative revenue sources. Revenue and Spending Snapshot: Q2 2025 According to the Ministry of Finance, total revenues for Q2 2025 amounted to SR301.595 billion ($80.4 billion), while expenditures totaled SR336.129 billion ($89.6 billion). This resulted in a budget deficit of SR34.534 billion ($9.2 billion) for the quarter. While oil revenues fell 29 percent year-on-year, dropping to SR151.7 billion ($40.4 billion), the gap was partially offset by strong performances in key non-oil categories: Income and profit taxes: SR13.729 billion ($3.7 billion) Taxes on goods and services: SR74.950 billion ($19.9 billion) Trade-related taxes: SR6.323 billion ($1.7 billion) Other taxes and miscellaneous income: Registered moderate growth Government spending fell by 9 percent compared to Q2 2024, declining from SR368.932 billion ($98.4 billion) to SR336.129 billion ($89.6 billion), a reflection of tighter fiscal controls. First Half 2025: Broader Economic Context In the first half of 2025, total revenue reached SR565.210 billion ($150.7 billion), against expenditures of SR658.446 billion ($175.5 billion), leading to a cumulative deficit of SR93.236 billion ($24.8 billion). Of this, non-oil revenues totaled SR263.667 billion ($70.3 billion), while oil revenues stood at SR301.543 billion ($80.4 billion). Spending during this period was 2 percent lower than in H1 2024, when it reached SR674.753 billion ($179.8 billion), indicating consistent efforts to rationalize expenditure. At the same time, On the fiscal side: public debt climbed to SR1.39 trillion ($370.7 billion), broken down into: public debt climbed to SR1.39 trillion ($370.7 billion), broken down into: SR871.3 billion ($232.2 billion) in domestic debt and SR515.136 billion ($137.4 billion) in foreign debt. The state reserve increased to SR396.954 billion ($105.7 billion), and the current account balance stood at SR102.587 billion ($27.3 billion). Non-Oil Sector Gains: Tangible Progress Under Vision 2030 Saudi Arabia's fiscal and economic transformation under Vision 2030 is producing measurable outcomes, aimed at reducing reliance on oil and building long-term resilience. Key reforms include: Revenue mobilization and energy price adjustments Expenditure controls and the Treasury Single Account (TSA) for centralized finance Enhanced fiscal risk assessments, budget transparency, and debt management frameworks These measures are part of the National Transformation Program and Fiscal Balance Program, which focus on non-oil sector growth, seen as more stable and job-rich compared to the oil sector's volatility. A central driver of this shift is the transformation of the Public Investment Fund (PIF). Once a domestic holding entity, the PIF now operates as a global sovereign wealth fund, directing capital into sectors aligned with future economic trends. Its portfolio spans AI research and development, global startups, big tech, Autonomous/ Self driving technology in partnerships with major electric vehicle manufacturing companies such as Lucid Motors, alongside stakes in firms like Facebook, Starbucks, Disney, Boeing, Citigroup, Live Nation, Marriott, Carnival Cruise Lines, Reliance Retail Ventures, and the Oryx Fund among many others. This global investment strategy complements domestic goals: increasing the non-oil GDP share, diversifying exports, and expanding private sector roles, all critical for future-proofing the economy and generating employment for Saudi Arabia's growing youth population.
Saudi Gazette
31-07-2025
- Business
- Saudi Gazette
Saudi non-oil revenues rise 7% in Q2 2025
Saudi Gazette report RIYADH — Saudi Arabia recorded a 7 percent increase in non-oil revenues during the second quarter of 2025, reaching SR149.861 billion ($39.9 billion), up from SR140.602 billion ($39.5 billion) in the same period last year. This surge brought non-oil revenue to nearly half of the Kingdom's total income for the quarter, accounting for 49.7 percent of all revenues. According to the Ministry of Finance, overall revenues for Q2 stood at SR301.595 billion ($80.4 billion), while expenditures reached SR336.129 billion ($89.6 billion), resulting in a budget deficit of SR34.534 billion ($9.2 billion) for the quarter. Oil revenues, however, saw a significant annual drop of 29 percent, falling to SR151.7 billion. Despite this decline, gains in taxation and other non-oil sectors helped cushion the impact. Revenues from income and profit taxes increased to SR13.729 billion, taxes on goods and services climbed to SR74.950 billion, and trade-related tax income grew to SR6.323 billion. Other taxes and miscellaneous income also recorded moderate growth. On the spending side, government expenditures fell by 9 percent compared to the same quarter last year, declining from SR368.932 billion to SR336.129 billion. In the first half of 2025, total revenues reached SR565.210 billion ($150.7 billion), while spending exceeded SR658.446 billion ($175.5 billion), leaving the government with a cumulative deficit of SR93.236 billion ($24.8 billion). Non-oil revenues during this period totaled SR263.667 billion, with oil revenues contributing SR301.543 billion. The report also noted a 2 percent year-on-year reduction in government spending during the first six months of the year, compared to SR674.753 billion in H1 2024. Saudi Arabia's public debt rose to approximately SR1.39 trillion by the end of June, with SR871.3 billion in domestic debt and SR515.136 billion in foreign obligations. The state reserve increased to SR396.954 billion, while the current account balance stood at SR102.587 billion.
