Riyadh, September 30 (QNA) - Saudi Arabia today announced the preliminary statement for the state's general budget for fiscal year 2027, which projected total expenditures of around SAR 1.392 trillion and total revenues of around SAR 1.202 trillion, with a deficit estimated at about 3.6 percent.
A statement issued by the Saudi Ministry of Finance today indicated that the continued implementation of economic diversification initiatives and economic reforms is expected to support revenues over the medium term. Total revenues are projected to reach around SAR 1.202 trillion in 2027 and rise to around SAR 1.351 trillion in 2029, while total expenditures are estimated at around SAR 1.392 trillion, rising to around SAR 1.544 trillion in 2029, amid continued spending on development and strategic priorities and projects with economic and social returns.
The 2027 budget is projected to record a deficit of around 3.6 percent of gross domestic product, within the framework of a fiscal policy based on long-term financial planning and maintaining fiscal sustainability. This enables the government to adopt balanced fiscal policies across economic cycles to support economic growth and continue implementing priority projects in pursuit of the objectives of Saudi Vision 2030.
Meanwhile, economic and geopolitical developments during 2026 affected the pace of Saudi Arabia's economic growth. Preliminary estimates indicate that real GDP contracted by 3.6 percent, attributed to oil activities, which are expected to decline by 21.8 percent. Non-oil activities, however, are expected to continue recording positive growth of 3.2 percent, helping to mitigate the impact of the decline in oil activities.
The statement also reviewed key estimates for economic indicators in 2026, showing that non-oil activities grew by 1.8 percent in the first half of the year, while their contribution to GDP rose to a historic level of 57.3 percent during the same period, supported by strong domestic demand and private investment inflows.
In addition, preliminary projections indicate that inflation will rise to around 2.1 percent for the full year, while the unemployment rate among Saudi nationals fell to 6.5 percent in the second quarter of 2026. (QNA)