Saudi Arabia's Bold Budget Plan for 2025 Amid Fiscal Deficit

Saudi Arabia has approved its 2025 state budget, projecting a fiscal deficit of 101 billion riyals. Despite challenges from declining oil prices and extended production cuts, the nation plans a significant spending increase to support its Vision 2030 economic transformation plan.

On Tuesday, Saudi Arabia approved its state budget for 2025, forecasting a fiscal deficit amounting to 101 billion riyals ($26.88 billion).

This deficit aligns with earlier government projections from September, representing around 2.3% of the nation's gross domestic product. The challenges posed by falling oil prices and ongoing voluntary production cuts, which have impacted revenue for the world's largest oil exporter, have not deterred Saudi Arabia. The nation is determined to continue with substantial spending to stimulate growth and fulfill its ambitious Vision 2030 economic transformation agenda.

Total expenditure for 2025 is set to reach 1.285 trillion riyals, equivalent to approximately 30% of GDP across the next three years. Meanwhile, total revenue is anticipated to be 1.184 trillion riyals.

(With inputs from agencies.)