Saudi Arabia’s total expenditure estimated $370 bln in 2027

Saudi Arabia’s total expenditure was estimated at 1.39 trillion riyals ($370.21 billion) and revenue projected at 1.20 trillion riyals ($319.61 billion) in 2027, the finance ministry said in a pre-budget statement on Wednesday.

The ministry projected a fiscal deficit equivalent to 191 billion riyals ($50.87 billion) or 3.6 percent of gross domestic product in 2027.

It estimated the 2026 deficit at 245 billion riyals ($65 billion), exceeding the 165 billion riyals ($43 billion) projected in the budget published last year.

Saudi Arabia forecasts real GDP growth of 12.8 percent in 2027, following an expected decline of 3.6 percent in 2026.

The ministry said the expected decline in real GDP in 2026 was due to a projected 21.8 percent drop in oil activities amid geopolitical developments in the region.

The ministry said that the 2027 deficit “will be funded through borrowing in accordance with a medium-term debt strategy framework,” with the borrowing plan for the 2027 “disclosed in detail by the end of this year.”