Saudi Finance Minister says Budget Deficit is STRICE and will not delay government spending
Mohammed Aljadaan, Saudi Arabia’s finance minister, said the Kingdom will continue to use “expansion” funds, and will continue to borrow as long as it can generate a higher return than the cost of borrowing.
The minister was responding to questions at a press conference on Tuesday regarding the approval of the general budget of Saudi Arabia for the fiscal year 1447/1448 ah (2026), where total spending is expected to reach sar1.313 trillion (US $ 350 billion). This will increase to approximately sar1.419 trillion (US $ 380 billion) in 2028.
“Besides all the spending on major strategies and projects, the government continues to focus on core services and improving services provided to citizens, including municipal services,” the Minister added.
Saudi Signals Continued Spending
By 2025, the Saudi budget deficit is expected to be SAR245 billion (US$65.3 billion). Spending is estimated at SAR1.336 Trillion (US$360 billion) and income around Sar1.091 Trillion (US$290 billion).
The minister said that in Saudi, the layoff was Study and explained: “The budget deficit is different according to their purpose. With this previous policy tested to achieve economic agreements, and to use strategies, even if it needs to be borrowed.
“The purpose of the loan of SAR245 billion is to generate a higher return than its cost, which is happening in the Kingdom. Currently, the economic growth, especially in the non-oil sector in the last five to five years.
“A lot of the cost recovery that we are doing now will come in the coming years, not immediately. So, it may be worth continuing, and this is what we will continue to do in the coming years.”
The Saudi economy is poised for strong growth
Minister Aljadaan also expected that by the end of 2025, real GDP growth will reach 4.4 percent, and that GDP growth will increase to reach sar5.6 trillion in 2028.
The Minister said that the State had not reached full strength, because the government’s income was still affected by oil prices. He added that long-term stability will be achieved by meeting the goals of Saudi Vision 2030.
Minister Aljadaan gave a brief overview of the Saudi Vision 2030, noting that 93 percent of the vision’s target performance indicators have been reached, or there are 299 indicators that have met their milestones before 2030.
The minister praised the changes brought about by Vision 2030, and how various groups have worked to achieve their goals.
“The economic reforms that have taken place since the launch of the Saudi Vision 2030 are reforms that are often difficult to achieve in the economy in a short period of time like the beginning of the vision,” said the Minister.
“For example, private sector investment as a percentage of GDP has changed by almost 40 percent in less than eight years since the initial allocation of the idea by 40 percent during the period of 40 percent during this period.”
Aljadaan highlighted that the contribution of non-oil activities is remarkable in terms of its growth and described the Kingdom’s achievement of this figure of 55.4 percent as “historic”.
Regarding spending money on health and education, the Minister noted that the cost could exceed SAR460 billion next year, stressing that this is not compatible with independence.
