Particle.news
Download on the App Store
10 ARTICLES
·
last wk.

Saudi Arabia Approves 2026 Budget With $350 Billion Spending and a Planned $44 Billion Deficit

Officials call the deficit a deliberate tool to fund Vision 2030 projects with returns exceeding borrowing costs.

Image
The government will maintain spending as long as the economic return exceeds the borrowing cost, Jadaan said
Image
Kristalina Georgieva, IMF managing director, with Saudi Arabia's Finance Minister Mohammed Al Jadaan, in Bali, Indonesia. AP

Overview

  • Spending is set at 1.313 trillion riyals with revenues at 1.147 trillion, leaving a 165.4 billion riyal shortfall equal to roughly 3.3% of GDP.
  • Finance Minister Mohammed Al Jadaan said the deficit is by design as the government continues targeted investment to accelerate diversification.
  • The ministry projects 4.6% real GDP growth in 2026 and inflation easing to 2%, supported by stronger non-oil activity.
  • Public debt is forecast to reach about 1.622 trillion riyals, or roughly 33% of GDP, as Riyadh keeps tapping debt markets given low leverage.
  • The IMF welcomed the recalibration of Vision 2030 spending after the 2025 deficit widened and noted officials’ readiness to rephase or scale back some megaprojects to protect fiscal sustainability.