According to the kingdom’s Ministry of Finance, the total budget deficit for the three months ending in September came to 35.8 billion Saudi riyals ($9.54 billion), up from 5.2 billion riyals in the second quarter.
For the first quarter of the year, the monarchy declared a 2.91 billion riyal budget deficit.
Saudi Arabia reported its 2023 growth prediction last month and stated that it anticipates running a deficit this year due to increased spending.
According to a preliminary budget announcement from the Ministry of Finance, the kingdom anticipates the real gross domestic product to expand by 0.03 percent this year “due to a voluntary reduction in oil production,” down from a previous growth projection of 3.1%.
It stated at the time that non-oil growth this year is expected to reach 5.9%, with the trade, hospitality, and tourist sectors leading the way.
After estimating a 16 billion riyal surplus last year, Saudi Arabia is now projecting an 82 billion riyal deficit this year.
While non-oil revenue increased by 53% year over year to 111.5 billion riyals in the third quarter, oil revenue decreased by 36% annually to Dh147 billion riyals. During the quarter, total revenue dropped 14% to 258.5 billion riyals.
Saudi Arabia has updated its 2023 growth prediction and anticipates a budget deficit this year due to increased spending.
