Saudi Arabia projects 2027 budget deficit at 3.6% of GDP

According to the Saudi Gazette, the Saudi Ministry of Finance has released its Pre-Budget Statement for the 2027 financial year, projecting a budget deficit of 3.6 percent of the Kingdom's GDP. The statement outlines total expenditures of approximately SR1,392 billion against revenues estimated at SR1,202 billion. This fiscal outlook is presented as part of a broader strategy to balance economic growth with the continued implementation of long-term development priorities.

The Ministry emphasized that the Kingdom’s fiscal approach remains anchored in the ongoing reforms initiated under Saudi Vision 2030. These structural changes have been credited with diversifying the national economic base, improving the overall business environment, and strengthening the role of the private sector. Officials noted that the resilience of the Saudi economy against external shocks has been bolstered by the consistent performance of non-oil activities, which continue to serve as a primary engine for growth.

The announcement reflects the government's commitment to maintaining fiscal sustainability while navigating global economic fluctuations. By prioritizing development projects and non-oil revenue streams, the Kingdom aims to sustain its current economic trajectory. The Pre-Budget Statement serves as a preliminary indicator of the government's financial planning, providing transparency for stakeholders and investors regarding the state's fiscal priorities for the coming year.