Saudi cabinet approves 2025 budget with USD27 billion deficit
Date
11/27/2024 2:24:18 AM
(MENAFN) The Saudi Council of Ministers, led by Crown Prince Mohammed bin Salman, has approved the Kingdom’s general budget for 2025. The budget projects revenues of 1.184 trillion riyals (USD315.7 billion) and expenditures of 1.285 trillion riyals (USD342.6 billion), resulting in an estimated deficit of 101 billion riyals (USD27 billion). The financial figures were announced during a Cabinet meeting chaired by the Crown Prince, with Finance Minister Mohammed bin Abdullah Al-Jadaan providing initial estimates.
According to Al-Jadaan, the 2025 budget aims to prioritize strategic spending on developmental initiatives aligned with the Kingdom’s Vision 2030. This includes sector-specific strategies and programs designed to bolster long-term economic growth. The projected deficit, he explained, is part of the Kingdom’s financial planning framework, with plans to rely on local and international financing operations to cover the shortfall and service debt obligations in 2025.
The Kingdom's public debt balance is expected to rise to 1.3 trillion riyals (USD346.6 billion) in 2025, representing approximately 29.9 percent of the GDP. This marks an increase from the 2024 debt level of 1.199 trillion riyals (USD317.3 billion), equivalent to 29.3 percent of the GDP. Al-Jadaan emphasized the Kingdom's commitment to sustainable debt management as part of its broader fiscal strategy.
Additionally, the Finance Minister projected that government reserves held at the Saudi Central Bank (SAMA) would remain stable at 390 billion riyals (USD104 billion) by the end of 2025, matching the level forecast for 2024. This stability underscores Saudi Arabia’s focus on maintaining robust financial reserves alongside its development and investment goals.
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