Minister of Finance Says Expansionary Spending to Continue in 2026 Budget

📷SPA

Riyadh, Dec. 3, 2025 (Saudi Arabia Breaking News) – Saudi Arabia will continue expansionary spending in the 2026 budget, with stability and medium-term planning remaining central to fiscal policy, Minister of Finance Mohammed Aljadaan said on Tuesday.

Total expenditure is projected at SAR1.313 trillion next year, rising to SAR1.419 trillion in 2028, with revenues expected to increase as economic activity accelerates. Spending on essential public services—including education, health, social programs and municipal services—is forecast to reach SAR533 billion in 2026.

The coming year marks the start of what the government calls the “maximizing impact” phase, which will require coordinated efforts from public entities and the private sector. According to Aljadaan, 93% of Vision 2030 performance indicators are either achieved or on track, while 85% of its initiatives are completed or progressing as planned. A total of 299 indicators have already met their targets ahead of 2030.

Preliminary 2025 figures show expenditures of SAR1.336 trillion, revenues of SAR1.091 trillion, and a deficit of about SAR245 billion. The minister described the deficit as a strategic one, aligned with policy objectives that reflect the Kingdom’s ability to sustain borrowing to implement major projects. Non-oil sector growth has averaged 5% over the past four to five years.

Aljadaan referred to remarks by His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud underscoring that citizens remain central to government priorities, citing social support programs reflected in the 2025 budget.

Structural shifts triggered by Vision 2030 have expanded private investment as a share of GDP by roughly 40% in under eight years. Non-oil activities now account for 55.4% of the economy, a level the minister described as historic, with the Vision target expected to be reached by 2030 or earlier.

The number of micro, small and medium enterprises has risen from about 500,000 to 1.7 million, creating 1.2 million job opportunities. Real GDP growth is expected to reach 4.4% by the end of 2025, and nominal GDP is projected to climb to SAR5.6 trillion by 2028.

Long-term sustainability remains a goal, as government revenues are still sensitive to oil price movements. Aljadaan stressed that Vision 2030 does not aim to eliminate reliance on oil, which he described as a major national resource that will remain important for decades.

The Public Investment Fund has expanded its assets from SAR150 billion to more than SAR800 billion in a short period. Aljadaan noted that PIF does not distribute profits to the government, as its mandate is long-term investment for future generations.

Spending on health and education is expected to exceed SAR460 billion next year. The minister said privatization does not conflict with public service provision, explaining that when an institution such as a hospital is transferred to the private sector, the government continues to allocate a budget to purchase services for citizens.

Project planning over long horizons, he added, requires flexibility to scale projects up or down depending on evolving needs and developments.