Latest news with #SR58.7
Arab News
05-05-2025
- Business
- Arab News
Saudi Arabia posts $15.6bn budget deficit in Q1 with resilient non-oil growth
RIYADH: Saudi Arabia recorded a budget deficit of SR58.7 billion ($15.65 billion) in the first quarter of 2025, according to the Ministry of Finance's latest fiscal performance report, as lower oil revenues outpaced gains in non-oil income. Total revenues for the quarter reached SR263.61 billion, marking a 10.16 percent decline compared to the same period last year. The drop is primarily attributed to reduced oil revenues, which fell 17.65 percent year on year to SR149.81 billion, driven by ongoing OPEC+ production cuts that curbed export volumes despite relatively steady global oil prices. Oil income accounted for 56 percent of total government revenues, down from 62 percent in Q1 2024. In contrast, non-oil revenues continued to grow modestly, rising 2.06 percent to SR113.81 billion, underpinned by structural economic reforms and the Kingdom's diversification agenda under Vision 2030. Taxation on goods and services remained the largest contributor to non-oil income, generating SR71.56 billion—up 2.37 percent year on year. Other non-oil revenue sources, including fees and investment returns, added SR25.41 billion, making up 22.3 percent of the non-oil total. Total government expenditures in the quarter rose 5.39 percent year on year to SR322.32 billion. The increase reflects Saudi Arabia's continued investment in strategic initiatives and priority development projects aligned with Vision 2030 goals. Compensation for government employees remained the largest expenditure category, totaling SR146.09 billion—an annual increase of 6.24 percent—and accounting for 45.3 percent of total spending. Expenditures on goods and services amounted to SR64.63 billion, or 20 percent of the quarterly total, while capital spending represented 8.6 percent. Other operational costs comprised 10.6 percent. The first quarter deficit was entirely financed through debt instruments, pushing Saudi Arabia's total public debt to SR1.33 trillion—up 19.08 percent from a year earlier. Of this, 60 percent was sourced domestically, with the remainder attributed to external borrowing, in line with the Kingdom's debt diversification strategy. Despite the fiscal shortfall, the ministry noted that the quarterly figures remain consistent with the government's 2025 budget plan. Revenues in the first quarter represent 22.3 percent of the full-year target, while expenditures account for 25 percent of the planned annual spend. Looking ahead, Saudi Arabia's fiscal outlook may receive a boost from higher oil output. OPEC+ recently announced plans to accelerate the unwinding of prior production cuts, including a June increase of 411,000 barrels per day. Combined with earlier boosts in April and May, the group plans to restore a total of 960,000 barrels per day—reversing 44 percent of the 2.2 million bpd reduction agreed upon in December 2024.
Saudi Gazette
05-05-2025
- Business
- Saudi Gazette
Saudi Arabia's budget posts quarterly deficit of SR58.7 billion
Saudi Gazette report 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.
