Hit by spending schemes and cheaper oil <\/p>\n
Deficit forecast at SAR245bn this year<\/p>\n
Shortfall expected to narrow in 2026 <\/p>\n
Saudi Arabia<\/a> has more than doubled its budget deficit estimate for this year as falling oil revenues and ambitious spending programmes take their toll.<\/p>\n The Finance Ministry forecast a SAR245 billion ($65.3 billion) gap, equivalent to 5.3 percent of GDP, versus the SAR101 billion projected in November.<\/p>\n The ministry forecast revenue for this year at SAR1.09 trillion and expenditure at SAR1.33 trillion, according to its latest pre-budget statement.<\/p>\n It sees the deficit dropping to SAR165 billion in 2026, declining further to SAR120 billion in 2027 and rising slightly to SAR125 billion in 2028. <\/p>\n Projected revenue and expenditure for 2026, the start of the third phase of the kingdom\u2019s Vision 2030<\/a> development programme, are SAR1.15 trillion and SAR1.31 trillion, respectively.<\/p>\n The ministry forecast economic growth at 4.4 percent this year, driven by a 5 percent expansion in non-oil activity. It projects 4.6 percent growth in 2026, again led by the non-oil sector, the statement added.<\/p>\n The predictions are more optimistic than those given by the International Monetary Fund. In June the IMF raised its 2025 GDP growth forecast for Saudi Arabia to 3.6 percent from 3.0 percent, and projected a 3.9 percent expansion in 2026.<\/p>\n