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The state budget closed with a SAR 30.2 bn deficit in 3Q 2024, widening from SAR 15.3 bn in 2Q, despite shrinking by 15% compared to last year, according to the Finance Ministry’s quarterly budget performance report (pdf). Total government revenues grew 20% y-o-y to SAR 309.2 bn, while expenditure rose 15% to SAR 339.4 bn.
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On a 9M basis: The Kingdom recorded a budget deficit of SAR 58 bn during the first nine months of the year, well within the ministry’s earlier forecasts. Government expenditures came in at SAR 1 tn with revenues clocking in at SAR 956.2 bn in 9M 2024.
REFRESHER- The government continues to double down on diversification plans and gigaprojects while staying clear of “overheating” the national economy. Officials have also said that they’re willing to accept modest fiscal deficits as the price of pursuing long-term diversification.
Oil revenues accounted for 62% of total government income in 3Q 2024, at a total of SAR 190.9 bn — rising 30% y-o-y. Meanwhile, non-oil revenues made up the remaining 38%, coming in at a combined SAR 118.3 bn, up 6% compared to the same period last year.
THE BREAKDOWN-
Total expenditures for 3Q 2024 rose 15% y-o-y to reach SAR 339.4 bn, with most sectors seeing considerable growth in public spending aside from grants, which fell 9% y-o-y. Subsidies doubled y-o-y to SAR 7.4 bn. Employee compensation accounted for the lion’s share of public spending at SAR 138.6 bn.
The Kingdom’s biggest expenses in 9M: Employee compensation clocked in at SAR 416 mn — the largest line item during the period — followed by goods and services usage at SAR 219 bn and financing expenses at SAR 32.8 bn. Total expenditure rose 13% y-o-y to SAR 1 tn in the first nine months of the year.
