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Saudi’s budget deficit widened to SAR 88.5 bn in 3Q 2025, from SAR 34.5 in the second quarter, according to the Finance Ministry’s quarterly budget performance report (pdf). The ballooning deficit — the highest in five years — was driven by a 13% decline in revenues to SAR 269.9 bn during the quarter, while expenditures increased 6% y-o-y to SAR 358.4 bn.
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For the first nine months of the year, the deficit totaled SAR 181.8 bn, with revenues reaching SAR 835.1 bn, down 13% compared to the same period last year. Expenditures inched up 0.3% y-o-y to over SAR 1 tn.
THE BREAKDOWN-
Oil revenues represented nearly 56% of the total government revenues in 3Q 2025, reaching SAR 150.8 bn (down 21% y-o-y). Meanwhile, non-oil revenues were up 1% to SAR 119.1 bn, buoyed by increased tax collections across the board.
Total expenditures climbed 6% y-o-y to SAR 358.4 bn in 3Q 2025. Compensation for government employees remained the single largest spending item at SAR 143.6 bn, representing 40% of total spending and marking a 4% y-o-y increase. Spending on goods and services followed at SAR 84 bn, up 2% y-o-y.
On a 9M basis, oil revenues came in at SAR 452.4 bn, down 23% y-o-y, while non-oil revenues rose 3% y-o-y to SAR 382.7 bn. On the expenditures side, compensation of employees increased 3% to SAR 430.1 bn, while spending on goods and services reached SAR 222.2 bn, inching up 1% y-o-y.
Debt status pro quo: Total public debt stood at SAR 1.47 tn at the end of the third quarter, with domestic debt amounting to SAR 930.1 bn, while external debt reached SAR 536.5 bn. Debt issuances until the end of September included SAR 257 bn of domestic debt and SAR 75.4 bn in external debt.
LOOKING AHEAD- The Finance Ministry expects the budget deficit to reach SAR 245 bn (5.3% of GDP) in 2025, compared to a SAR 101 deficit in its approved budget for the year, and more than double from 2024’s SAR 115.6 bn deficit.
