Saudi Arabia Reports $3.3 Billion Budget Deficit for Q1 2024
Saudi Arabia reported a budget deficit of 12.39 billion Saudi riyals (equivalent to $3.303 billion) in the first quarter of 2024, according to a quarterly report by the Ministry of Finance. The deficit arises from total expenditures reaching 305.82 billion riyals against revenues of 293.43 billion riyals.
The report highlights oil revenue, which stood at 181.92 billion riyals, marking a 2% increase compared to the same quarter last year. This sector remains the leading source of revenue for Saudi Arabia. Non-oil revenue also contributed significantly, with a 9% increase from the previous year, totaling 111.51 billion riyals.
The Saudi cabinet had previously approved the 2024 state budget, with an estimated deficit of 97 billion riyals. The first-quarter results align with the government’s expectations for the year. This fiscal performance reflects the ongoing shifts in Saudi Arabia’s economy, with the government aiming to diversify its revenue streams amid fluctuating oil markets.
Despite the budget deficit, the increase in non-oil revenue is seen as a positive indicator of the kingdom’s efforts to broaden its economic base and reduce reliance on oil. The government is expected to continue implementing measures aimed at improving economic sustainability and fiscal management.
