The Kingdom estimates an expansionary budget for 2025: Revenues of 1.184 trillion riyals, spending of 1.285 trillion riyals

The Ministry of Finance revealed the preliminary statement of the Kingdom’s 2025 budget a short while ago, which expected revenues to reach 1.184 trillion riyals, while spending would reach 1.285 trillion riyals, with a deficit of 101 billion riyals.

As for 2024, the Ministry of Finance expects revenues to reach 1.237 trillion riyals by the end of the year, and spending to reach 1.355 trillion riyals, with a deficit of 118 billion riyals. The Ministry of Finance had estimated the 2024 budget at revenues of 1.172 trillion riyals, while spending was approved at 1.251 trillion riyals, with a deficit of 79 billion riyals.

The statement indicated achieving growth rates in the gross domestic product supported by the growth of non-oil activities; Which contributed to the prosperity of promising sectors such as tourism, entertainment, transportation, logistics and industry, in addition to improving the quality of life, empowering the private sector, and reducing the unemployment rate to its lowest levels in history, which was positively reflected in the expectations of international organizations and credit rating agencies for the performance of the Saudi economy. The statement reviewed the most prominent expectations for the year 2024, including recording real GDP growth of 0.8% in 2024; supported by the growth of non-oil activities, which is expected to record approximately 3.7%, in addition to the fact that the recent decline in interest rates is expected to contribute to an increase in demand, which may positively affect economic growth, as initial expectations indicate that the consumer price index (inflation rate) will reach about 1.7% by the end of 2024. The Ministry of Finance issues the preliminary statement of the state’s general budget for the fiscal year 2025 as part of the government’s policy to develop the methodology for preparing the general budget, place it within a comprehensive financial and economic framework in the medium term, enhance transparency and financial disclosure, and financial planning for several years. Through the statement, it aims to inform citizens, interested parties, and analysts of the most important local and international economic developments that affect the preparation of the budget for the coming year, in addition to the most important financial and economic indicators for the year 2025.