Saudi Arabia’s budget deficit narrowed to SAR 30.23 billion ($8.06 billion) in the third quarter of 2024, a 15% reduction from the same period a year prior, as reported by the Ministry of Finance.
The nine-month deficit totalled SAR 57.96 billion, aligning with earlier Ministry forecasts.
The Kingdom’s government expenditures rose by 15% to SAR 339.44 billion, reflecting continued investment in its Vision 2030 transformation programme.
Employee compensation was the largest government expense, at 41% or SAR 138.63 billion. Spending on goods and services comprised 24%, at SAR 82.69 billion, with a 15% increase. Capital expenditures on non-financial assets were 14%, at SAR 48.15 billion, a 17% rise. Subsidies also grew by 10% to SAR 7.44 billion.
Government revenues surged by 20% compared to the same quarter last year, reaching SAR 309.21 billion. Oil revenues alone reached SAR 191 billion, making up 62% of the total government income and constituting a 30% increase.
Non-oil revenues accounted for 38%, totalling SAR 118.34 billion, amounting to a 6% rise. Meanwhile, taxes on goods and services, a major component of non-oil revenue, reached SAR 73.94 billion, up by 5%. The most significant growth was seen in “other taxes,” which increased by 69% to SAR 5.31 billion, primarily from corporate zakat and other business-related taxes.
The government’s current account balance experienced a 429% increase, reaching SAR 76.7 billion. However, government reserves dropped by 4% to SAR 390.08 billion, and public debt stood at SAR1.16 trillion, with 60% being domestic.
In September, the ministry revised its 2024 budget deficit estimate to SAR 118 billion, a 49% increase from previous projections, reflecting Saudi Arabia’s ongoing investments in economic growth and diversification.
