Saudi Arabia Faces SR125.7 Billion Deficit in Q1 2026

May 6, 2026

74 min

May 6, 2026 02:30

Saudi Arabia posts SR125.7 billion deficit in Q1 2026 on lower oil revenues

## Decline in Oil Revenues

Saudi Arabia reported a budget deficit of SR125.7 billion ($33.5 billion) in the first quarter of 2026. This shortfall is attributed to a decrease in oil revenues and increased government spending, according to the Ministry of Finance.

Oil revenues fell by 3% compared to the previous year, totaling SR144.72 billion. Despite this decline, total revenues for the quarter reached SR260.97 billion.

## Rise in Non-Oil Revenues

Non-oil revenues saw a modest increase of 2%, amounting to SR116.25 billion. This growth was primarily driven by taxes on goods and services, which contributed SR74.93 billion.

## Increased Government Spending

Government expenditure rose by 20% year-on-year, reaching SR386.69 billion. This increase reflects higher spending on operations, capital projects, and employee compensation, which alone accounted for SR151.06 billion.

Spending on goods and services increased to SR98.05 billion, while capital expenditure was SR43.43 billion, indicating ongoing investments in infrastructure.

## Financing the Deficit

The deficit was entirely financed through borrowing, with total financing matching the shortfall at SR125.7 billion. Consequently, public debt rose to SR1.67 trillion by the end of the quarter, up from SR1.52 trillion at the beginning of the year.

Domestic debt accounted for SR1.04 trillion, while external debt was SR624.4 billion. Government reserves stood at SR400.93 billion, and the current account balance was SR67.67 billion.

## Sectoral Spending

Increased spending was noted across various sectors, including military, security, education, health, social development, and infrastructure, as reported by the Ministry of Finance.

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