Saudi Arabia’s Finance Ministry on Wednesday announced the preliminary statement for the state’s general budget for fiscal year 1448/1449 AH (2027), estimating total spending at about 1,392 billion riyals ($371.2 billion) and revenue at about 1,202 billion riyals ($320.5 billion), with a deficit of about 3.6% of gross domestic product.
The ministry said the estimates form part of a fiscal approach that balances support for economic growth with continued implementation of development priorities, while maintaining fiscal sustainability and long-term financial planning.
Revenue and spending through 2029
The ministry forecast total revenue to rise from about 1,202 billion riyals in 2027 to about 1,351 billion riyals in 2029, supported by the continued implementation of economic diversification initiatives and economic reforms. Non-oil revenue rose from about 166 billion riyals in 2015 to 505 billion riyals in 2025.
By contrast, the ministry estimated that total spending would rise from about 1,392 billion riyals in 2027 to about 1,544 billion riyals in 2029, amid continued spending on development and strategic priorities and projects with economic and social returns.
Saudi economic estimates for 2026
The statement said economic and geopolitical developments during 2026 affected the pace of growth in the Saudi economy. Preliminary estimates showed real gross domestic product declining by 3.6%, with oil activities expected to contract by 21.8%, compared with 3.2% growth in non-oil activities.
Non-oil activities grew by 1.8% during the first half of 2026, while their contribution to gross domestic product rose to 57.3% during the same period, supported by domestic demand and private investment flows. The ministry also estimated that the inflation rate would rise to about 2.1% for the full year, while the unemployment rate among Saudis fell to 6.5% in the second quarter of 2026.
Domestic and international financing
The government intends to continue domestic and international financing operations under its medium-term debt strategy framework, through public and private channels, issuing bonds and sukuk, and obtaining loans at fair cost. It also plans to expand alternative government financing operations during 2027 and over the medium term through project and infrastructure financing and export credit agencies.
Long-term fiscal policy
Finance Minister Mohammed bin Abdullah Al-Jadaan said the preliminary estimates for the 2027 budget came amid a global economic environment marked by persistent uncertainty and accelerating geopolitical developments. He stressed that the Kingdom manages its public finances from a long-term perspective, while continuing to spend on development and strategic priorities, maintaining fiscal sustainability and the strength of its financial position.
The government continues to monitor economic and geopolitical developments and assess their potential impact on the global economy, supply chains and energy markets, and address them with flexible, proactive policies that support the economy and strengthen its ability to continue achieving the targets of Saudi Vision 2030
Al-Jadaan said the estimated deficit in 2027 was part of a policy aimed at maintaining the strength of the financial position and enhancing fiscal sustainability by keeping public debt at sustainable levels and maintaining substantial financial reserves. The preliminary budget statement has been issued for the ninth consecutive year as part of efforts to enhance transparency and disclosure of public finance performance.
