Modest non-oil growth drives public debt up to SR1.67 trillion.
Saudi Arabia posted a budget deficit of SR125.7 billion ($33.5 billion) in the first quarter of 2026, as lower oil revenues and a sharp increase in government spending weighed on public finances, the Saudi Ministry of Finance said.
Total revenues stood at SR260.97 billion in Q1, with oil income contributing SR144.72 billion despite a 3% year-on-year decline, according to the ministry’s quarterly budget report.
Non-oil revenues increased by 2% to SR116.25 billion, driven mainly by taxes on goods and services, which generated SR74.93 billion.
Government expenditure rose 20% year-on-year to SR386.69 billion, driven by higher spending on operations and capital projects.
Compensation of employees totalled SR151.06 billion, while spending on goods and services increased to SR98.05 billion. Capital expenditure reached SR43.43 billion, highlighting continued investment in infrastructure and development.
The deficit was fully financed through borrowing, with total financing matching the shortfall at SR125.7 billion.
Public debt rose to SR1.67 trillion by the end of the quarter, up from SR1.52 trillion at the start of the year. Domestic debt accounted for SR1.04 trillion, while external debt reached SR624.4 billion.
Government reserves stood at SR400.93 billion, while the current account balance was recorded at SR67.67 billion at the end of the review period.
Spending increased across most sectors, including military and security, education, health and social development, and infrastructure, the Saudi Ministry of Finance said.
