Saudi Arabia estimates 2025 revenues at SAR 1.18T, expenditure at SAR 1.28T

FY2025 budget reflects the government’s commitment to achieving the objectives of Saudi Vision 2030 by advancing the fiscal and economic reforms. This includes implementing a fiscal policy that balances the utilization of the available fiscal space —stemming from the government’s strong fiscal position, the existence of financial reserves and relatively low public debt compared to peer countries— with the ongoing improvements in spending efficiency and expenditure prioritization. This approach involves accelerating certain projects and strategies that support sustainable economic growth, while adjusting the timelines of other projects. The aim is to stabilize the economy, diversify its base for greater sustainability, and maximize economic and social returns.

 

At the same time, the government remains committed towards improving the quality of services provided to citizens and residents by strengthening the social protection system and directing it towards the intended beneficiaries.

 

The FY2025 budget highlights the Kingdom’s commitment to accelerate the regulatory and structural reforms, as well as the development of policies.

 

It also focuses on transformative spending to promote sustainable economic growth, improve social development, and enhance the quality of life. Moreover, the government aims to utilize sovereign and development funds for capital investment while empowering both the private and non-profit sectors to foster growth and prosperity.

 

In FY2025, the budget is projected to record a deficit of approximately 2.3% of GDP. It is anticipated that the deficit will persist at similar levels over the medium term, due to the expansionary spending policies intended to support economic growth.

 

The fiscal policy aims to preserve the Kingdom’s strong fiscal position while achieving fiscal sustainability through maintaining safe levels of government reserves, and ensuring sustainability of public debt. This strategy aims to strengthen the Kingdom’s ability to deal with unforeseen shocks.