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Saudi Arabia posts SR125.7 billion Q1 deficit as oil revenues decline
May 5, 2026
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RIYADH — Saudi Arabia recorded a budget deficit of SR125.7 billion in the first quarter of 2026, as oil revenues declined and government spending rose sharply, according to the Ministry of Finance’s quarterly budget performance report.Total revenues reached SR260.97 billion in Q1, driven largely by oil income of SR144.72 billion, which accounted for the biggest share despite a 3 percent year-on-year decline.Non-oil revenues rose 2 percent to SR116.25 billion, supported mainly by taxes on goods and services, which generated SR74.93 billion.Expenditures climbed to SR386.69 billion, up 20 percent compared to the same period last year, reflecting higher spending across key categories including government operations and capital projects.Compensation of employees stood at SR151.06 billion, while spending on goods and services surged to SR98.05 billion.Capital expenditure (non-financial assets) reached SR43.43 billion, highlighting continued investment in infrastructure and development projects.The deficit was fully financed through borrowing, with total financing amounting to SR125.7 billion during the quarter.Public debt rose to SR1.67 trillion by the end of the first quarter, up from SR1.52 trillion at the start of the year.
Domestic debt accounted for SR1.04 trillion, while external debt stood at SR624.4 billion, reflecting continued reliance on both local and international debt markets.Government reserves reached SR400.93 billion, while the current account balance stood at SR67.67 billion at the end of the period.Sectoral spending data showed increases across most areas, with notable allocations to military and security, education, health and social development, and infrastructure.
Saudi Gazette
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