The Finance Ministry also revised its previous forecast of surpluses every year until 2025, now expecting deficits until at least 2026, according to a preliminary budget statement published Saturday.
Under Crown Prince Mohammed bin Salman, the country’s de facto ruler, Saudi Arabia is pushing to diversify its oil-dependent economy, building up new domestic industries including electric car-making, tourism and logistics. But the plans are hugely expensive, putting strain on government finances. The government is expecting revenue next year to be 1.18 trillion riyals, a slight decrease from this year based on what it called “conservative estimates of oil and non-oil revenue.” That could be a reflection of continued uncertainty over oil demand, with fears of a recession continuing to haunt the US and disappointing economic data from China.That will leave the kingdom facing a deficit in 2024 of 79 billion riyals, equal to about 1.9% of economic output.