Riyadh: Saudi Arabia’s budget deficit shrank to SR30.23 billion ($8.06 billion) in Q3 2024, marking a 15% year-on-year decrease, according to the Ministry of Finance. This adjustment aligns with previous forecasts and brings the total deficit to SR57.96 billion for the nine months ending in September.
Fueled by a 20% boost in government revenues, which reached SR309.21 billion, and a 15% rise in spending to SR339.44 billion, the Q3 report highlights the Kingdom’s robust financial management amid ambitious economic initiatives. Oil revenues, which comprised 62% of total income, soared by 30% to SR190.87 billion, while non-oil revenues rose by 6%, totaling SR118.34 billion.
Breaking down non-oil income, taxes on goods and services formed the majority, with a 5% increase to SR73.94 billion. Additionally, “other taxes,” which include corporate zakat, surged by a striking 69% to SR5.31 billion.
Government expenditure focused largely on employee compensation, which accounted for 41% of the total at SR138.63 billion—a 6% uptick. Spending on goods and services grew 15% to SR82.69 billion, and capital expenditures saw a 17% rise, reaching SR48.15 billion. Subsidies also expanded, climbing 10% to SR7.44 billion.
Despite a global environment of oil production cuts by OPEC+ that typically strain revenues, Saudi Arabia reported resilient revenue gains. The Kingdom’s strategic approach underscores its commitment to Vision 2030, supporting infrastructure, technology, and public service advancements aimed at economic diversification.
The ministry adjusted the 2024 budget deficit projection to SR118 billion, a 49% increase from initial estimates, driven by expansive growth goals. Government reserves dipped by 4% to SR390.08 billion, while public debt closed Q3 at SR1.16 trillion, with 60% as domestic debt.
