The Saudi Ministry of Finance announced the actual results of the state budget performance for the fiscal year 2025, which showed positive indicators reflecting the success of the Kingdom's economic diversification plans. Official figures revealed that total state revenues reached 1.11 trillion riyals , while public expenditures amounted to approximately 1.389 trillion riyals , resulting in a budget deficit of 276.61 billion riyals . This reflects the government's continued adoption of expansionary spending policies to support major development projects.
A surge in non-oil revenues and support for Vision 2030
In a clear indication of the success of the Kingdom’s Vision 2030 programs aimed at reducing dependence on oil as the sole source of income, the financial report showed that non-oil revenues continued their upward trajectory to record about 505.82 billion riyals , achieving a growth of 1% compared to 2024. These revenues constituted 45.45% of the state’s total income, which enhances the financial strength of the Saudi economy and protects it from the fluctuations of global energy markets.
In contrast, oil revenues approximately 606.54 billion riyals , equivalent to 54.55% of total revenues, confirming the gradual balance that the Kingdom’s economic structure has begun to witness between the oil and non-oil sectors.
Expense details: Spending on salaries and projects
The "Employee Compensation" item accounted for the largest share of expenditures, reaching approximately 574.53 billion riyals , reflecting the state's commitment to supporting its human resources and government jobs. Details of other expenditure items are as follows:
- Use of goods and services: 316.34 billion riyals, which covers the operating expenses of government agencies.
- Non-financial expenditures (capital expenditures): amounted to 168.51 billion riyals, and these expenditures are the main driver of infrastructure projects and mega-projects.
- Social benefits: Recorded 99.32 billion riyals, to ensure the social safety net for citizens.
- Financing expenses: 54.47 billion riyals.
- Subsidies: 35.91 billion riyals.
- Grants: 5.19 billion riyals.
- Other expenses: 134.16 billion riyals.
Fourth quarter performance of 2025
Regarding quarterly performance, the report indicated that the fourth quarter witnessed significant activity, with revenues reaching approximately SAR 276.74 billion , compared to expenditures of SAR 371.59 billion , resulting in a deficit of SAR 94.85 billion . Notably, non-oil revenues in this quarter alone amounted to SAR 122.56 billion (44% of total quarterly revenues), while oil revenues reached SAR 154.19 billion .
Economic and strategic impact
These figures demonstrate Saudi Arabia's commitment to proceeding with its development projects despite the deficit, which is viewed as a "planned deficit" aimed at accelerating the pace of completion of strategic projects that will generate sustainable economic returns in the future. Furthermore, the stable growth of non-oil revenues sends reassuring messages to local and international investors about the Kingdom's seriousness in creating a diversified and stable economic environment, independent of oil price volatility.
