RIYADH: Saudi Arabia’s capital spending rose 18 percent year on year in the fourth quarter of 2025, while higher overall expenditure widened the Kingdom’s budget deficit to SR94.85 billion ($25.28 billion), official data showed.
According to the Ministry of Finance’s Quarterly Budget Performance Report, government spending increased to SR371.6 billion in the three months to December, up 3 percent from SR360.5 billion in the same period a year earlier.
Capital expenditure — classified as spending on non-financial assets — climbed to SR50.9 billion in the fourth quarter from SR43.1 billion a year earlier, highlighting sustained investment in infrastructure and development projects.
Total revenues reached SR276.7 billion in the quarter, increasing from SR269.9 billion in the third quarter but declining about 9 percent from a year earlier due to weaker oil income.
Oil revenues totaled SR154.2 billion in the fourth quarter, down 10 percent year on year despite a quarterly increase supported by higher production levels. For the full year, oil revenues fell around 20 percent to SR606.5 billion from SR756.6 billion in 2024.
Non-oil revenues — a key pillar of Saudi Arabia’s diversification strategy — stood at SR122.6 billion in the fourth quarter. On an annual basis, non-oil revenues rose by 1 percent to SR505.3 billion in 2025, compared with SR502.5 billion the previous year.
Saudi Arabia maintained an expansionary fiscal stance throughout 2025, with total government expenditure reaching SR1.39 trillion, up 1 percent from SR1.37 trillion in 2024.
Spending increased across several priority sectors. Education expenditure rose 4 percent to SR212.5 billion, while health and social development spending increased 2 percent to SR278.9 billion.
Military and security sector spending climbed about 5 percent to SR249.1 billion, while public administration expenditure grew 7 percent. Spending on general items rose 3 percent, and regional administration outlays increased marginally by 0.4 percent.
For the full fiscal year, total revenues reached SR1.11 trillion against expenditure of SR1.388 trillion, resulting in a budget deficit of SR276.6 billion — exceeding earlier government projections as oil revenues declined.
Public debt rose to SR1.52 trillion at the end of 2025, compared with SR1.22 trillion a year earlier, as the Kingdom increased borrowing to finance fiscal gaps while continuing to fund large-scale development and infrastructure projects.
