Saudi budget posts SR34.3bn deficit in Q2 as revenues rise 12%

According to the Saudi Gazette, the Saudi Arabian Ministry of Finance released its quarterly budget performance report on Thursday, revealing a budget deficit of SR34.3 billion ($9.1 billion) for the second quarter of 2026. The data indicates that while government expenditure rose by 11% year-on-year to reach SR373.1 billion ($99.5 billion), total revenue also saw a notable increase of 12%, amounting to SR338.8 billion ($90.3 billion).

The report highlights a significant performance in the energy sector, with oil revenue climbing 22% compared to the same period in 2025, reaching SR185.1 billion ($49.4 billion). Non-oil revenue also demonstrated growth, rising 3% to SR153.7 billion ($41 billion). These figures contribute to a broader fiscal picture for the first half of 2026, during which total government revenue reached SR599.8 billion ($159.9 billion), representing a 6% increase over the first half of the previous year.

This fiscal update provides insight into the Kingdom's ongoing economic diversification efforts under Vision 2030, balancing increased public spending with fluctuating oil market dynamics. The Ministry of Finance continues to monitor revenue streams across both oil and non-oil sectors as the government maintains its commitment to long-term infrastructure and social development projects. Further details regarding the breakdown of tax revenues on goods and services are expected to be analyzed as part of the full fiscal performance review.