Saudi 2025 Budget Focuses on Economic Diversification, Social Support

Saudi Arabia’s Ministry of Finance has outlined key priorities in the 2025 budget, emphasizing continued investment in economic diversification and strengthening the social support and subsidy system. The government aims to improve the quality of life by enhancing public services and infrastructure, while maintaining financial sustainability.
The 2025 budget projects a deficit of 101 billion riyals ($26.9 billion), equivalent to 2.3% of GDP, with total spending estimated at 1.285 trillion riyals. This aligns with previous forecasts, representing about 30% of GDP over the next three years. Inflation is expected to remain stable at 1.9% over the same period.

Expansionary Policies to Drive Growth
The Ministry stated that expansionary fiscal policies will continue to support economic diversification and sustainable growth. Spending on essential services for citizens and residents remains a priority, with long-term financial planning aimed at ensuring spending stability.
The Kingdom’s total public debt is projected to rise slightly to 1.3 trillion riyals in 2025, compared to 1.2 trillion riyals this year, maintaining a level below 30% of GDP.

Revised 2024 Estimates
For 2024, the deficit estimate has been revised to 115 billion riyals, down from a September forecast of 118 billion riyals, equivalent to 2.8% of GDP. Total revenues are now expected to reach 1.23 trillion riyals, a 4.9% increase from earlier projections, driven by non-oil activities. Spending for 2024 is estimated at 1.345 trillion riyals, up 7.5% from previous forecasts.
On Tuesday, the Saudi Council of Ministers, chaired by Crown Prince Mohammed bin Salman, approved the 2025 budget, with revenues estimated at 1.184 trillion riyals and expenditures set at 1.285 trillion riyals.