Saudi Arabia plans $371bn spending in 2027 with $51bn deficit as GDP falls 3.6%

On Wednesday, the Ministry of Finance in Saudi Arabia unveiled its Pre-Budget Statement for the fiscal year 2027, projecting total expenditures at around SR1,392 billion and total revenues at approximately SR1,202 billion. This indicates a projected budget deficit of 3.6 percent of GDP, a figure that remains aligned with Saudi Arabia's fiscal policy of long-term financial planning and sustainability.

The statement highlighted that the Kingdom has seen benefits from economic reforms since the inception of Saudi Vision 2030, which has brought diversification to the economy, improved the business environment, and enhanced the role of the private sector. These factors have contributed to the robustness of non-oil activities, which have supported economic growth and bolstered the nation's resilience against economic shocks.

Total revenues for 2027 are expected to rise to approximately SR1,351 billion by 2029, a significant increase from the current projection of SR1,202 billion. This growth is largely attributed to the expansion of non-oil revenues, which have risen from SR166 billion in 2015 to SR505 billion in 2025. The statement also noted that expenditures are anticipated to reach around SR1,544 billion by 2029, driven by ongoing investment in development projects and economic and social returns.

Despite the challenges posed by global economic uncertainties and geopolitical developments, the government is committed to maintaining fiscal sustainability and supporting economic growth. The 2027 budget estimates will be reviewed in light of a volatile global environment, yet the Saudi government remains steadfast in its commitment to implementing transformation plans that will continue to drive economic growth and bolster the nation's financial position.