Saudi Arabia reports deficit of SR58.7b in Q1 2025

Dubai: Saudi Arabia recorded actual revenues of SR263.62 billion and expenditures of SR322.3 billion in the first quarter of 2025, resulting in a budget deficit of SR58.7 billion, the Ministry of Finance announced on Monday. Total revenues during the three-month period fell by 10 percent year-on-year.

According to the ministry’s quarterly budget performance report, oil revenues amounted to SR149.8 billion, while non-oil revenues reached SR113.81 billion. 

The figures reflect the Kingdom’s continued efforts to diversify its income sources and strengthen long-term fiscal sustainability. The increase in public spending aligns with Saudi Arabia’s strategy to stimulate economic growth and advance major projects under Saudi Vision 2030.

The report noted that the Q1 2025 deficit of SR58.7 billion is the largest since the fourth quarter of 2021 and marks the tenth consecutive year.

The shortfall follows ongoing oil production cuts by the OPEC+ alliance, combined with a decline in average crude prices compared to the same period in 2024. Oil output fell by one percent to 8.95 million barrels per day, while Brent crude prices dropped 15 percent to $75 per barrel.

The deficit was driven by a 10 percent drop in state revenues to SR263.6 billion, alongside a five percent increase in government spending, which rose to SR322.3 billion. 

The Q1 2025 deficit is more than three times the SR12 billion recorded in the same quarter last year. The decline in overall revenue included an 18 percent drop in oil revenues to SR150 billion, while non-oil revenues grew by two percent to reach SR114 billion.