Saudi Arabia's Bold Budget Plan Boosts Vision 2030 Amid Projected Deficit

Saudi Arabia forecasts a $26.88 billion fiscal deficit in 2025, driven by its investment in Vision 2030 gigaprojects aimed at diversifying its economy from hydrocarbons. Despite declining oil revenues, the kingdom anticipates GDP growth through strategic spending and foreign investments, with public debt reaching 1.3 trillion riyals.

Saudi Arabia has approved its fiscal plan for 2025, projecting a 101 billion riyal ($26.88 billion) deficit, continuing its investment in large-scale projects under Vision 2030 to decrease reliance on oil income.

Although oil revenues have decreased due to lower prices and production cuts, the kingdom is pushing ahead with ambitious spending to foster economic growth and transformation. Total projected expenditures for 2025 are set at 1.285 trillion riyals, with revenues expected to reach 1.184 trillion riyals.

Vision 2030 aims to generate sustainable revenue streams by developing tourism, manufacturing, and enticing foreign investments. Nonetheless, the kingdom is refocusing priorities on components essential for hosting international sports events amidst mounting project costs.

(With inputs from agencies.)