RIYADH: Saudi Arabia’s total government revenues reached SR1.26 trillion ($336 billion) in 2024, marking a 4 percent increase from the previous year and exceeding the initial budget estimates by 7 percent, the latest official data showed. 

According to the budget performance report released by the Ministry of Finance on Thursday, total expenditures stood at SR1.37 trillion, reflecting a 6 percent annual increase, while the budget deficit widened to SR115.63 billion — up 43 percent from 2023 but in line with projections. 

The rise in revenues was primarily fueled by a surge in non-oil income, which accounted for 40 percent of total revenues and reached SR502.47 billion, reflecting a 9.78 percent year-on-year increase. 

Taxes on goods and services accounted for the largest portion of non-oil revenues, comprising 57.5 percent of the total and increasing by 10.03 percent from 2023. 

Other major sources included non-tax revenues at SR121.94 billion, other taxes at SR35.65 billion, taxes on income, profits, and capital gains at SR31.57 billion, and taxes on international trade and transactions at SR24.5 billion, representing a 4.88 percent share in 2024.  

Despite oil remaining the dominant revenue source, its share of total government income declined from 62.24 percent in 2023 to 60 percent in 2024, with revenues from crude oil and petroleum products reaching SR756.62 billion.  

The decline in oil revenues in 2024 was largely attributed to Saudi Arabia’s commitment to production cuts in line with OPEC+ agreements aimed at stabilizing global oil markets.   

Despite this, the Kingdom remains on an expansionary fiscal path, with increased government spending supporting Vision 2030 initiatives. 

The rise in expenditures reflects sustained investment in infrastructure, economic diversification, and social development projects. 

While the budget deficit widened, it remains within expectations and at a manageable level relative to GDP. 

Saudi Arabia continues to uphold a strong fiscal position, reinforced by prudent debt management and favorable credit ratings. The Ministry of Finance, in collaboration with the National Debt Management Center, follows a comprehensive borrowing strategy that ensures long-term sustainability by diversifying financing sources across domestic and international markets. 

The government has also expanded its financing channels through sukuk and bond issuances, project-based funding, and partnerships with export credit agencies. 

These measures, combined with substantial financial reserves, position Saudi Arabia to navigate economic fluctuations while sustaining strategic investments. 

Crown Prince Mohammed bin Salman reaffirmed the government’s commitment to fiscal reforms, emphasizing economic diversification and private sector empowerment as key pillars of long-term financial stability. 

Despite global economic uncertainties, the Kingdom remains well-positioned to drive regional and global economic growth.   

Breakdown of expenditures 

Saudi Arabia’s total government spending grew 6 percent year on year, reaching SR1.37 trillion. Employee compensation remained the largest expenditure category, rising by 4 percent to SR558.92 billion. 

Spending on goods and services followed, comprising 24 percent of total expenditures at SR311.25 billion. Non-financial assets capital expenditures, known as CAPEX, accounted for 14 percent of total spending, amounting to SR190.6 billion. 

In the fourth quarter of 2024, government expenditures reached SR360.52 billion, marking a 9 percent decrease compared to the same period in 2023. 

Despite the rise in the budget deficit, the Kingdom’s fiscal performance remained in line with expectations, demonstrating resilience in non-oil revenue growth and continued commitment to economic diversification under Vision 2030. 

In the fourth quarter of 2024, total revenues stood at SR302.86 billion, reflecting a 15 percent drop compared to the same period in 2023 due to lower oil revenues. 

Oil income fell by 31 percent year on year, while revenues from non-oil activities saw a notable 21 percent increase during the same period, according to Ministry data.

Public debt and fiscal management 

Saudi Arabia’s public debt rose to SR1.22 trillion by the end of 2024, a 16 percent increase from the previous year. Domestic debt accounted for 61 percent of the total, while foreign debt made up the remaining 39 percent. 

Public debt has been strategically leveraged to finance large-scale projects and initiatives that are central to Vision 2030, such as infrastructure development, diversification of the economy, and investments in non-oil sectors.

The sustained demand for Saudi debt on the international market also underscores the country’s solid credit ratings and fiscal policies that continue to attract global investors.

This rise in public debt is being managed prudently by the government, which has been focused on ensuring that borrowing supports growth without overstretching fiscal limits.

Furthermore, the Saudi authorities have undertaken reforms to ensure that debt levels do not adversely affect the country’s fiscal health, and that it is being used to generate long-term returns through infrastructure and economic diversification.