The Saudi finance ministry reported a budget shortfall of 34.3 billion riyals, equivalent to $9.14 billion, for the second quarter of 2026, the ministry said on Thursday, according to Saudi state television. The figure covers the three months ended June 30 and reflects a fiscal position that remains in deficit despite year-on-year revenue gains.
Government expenditure for the quarter rose 11% versus the same period a year earlier, reaching 373 billion riyals. At the same time, total government receipts increased 12%, amounting to 338.784 billion riyals for the quarter. The combination of higher spending and increased revenue resulted in the reported deficit.
Comparing the two consecutive second quarters, the kingdom recorded a 34 billion riyal deficit in Q2 2025. The 2026 shortfall of 34.3 billion riyals is therefore slightly larger in absolute terms than the prior-year quarter.
Revenue composition in Q2 2026 showed divergent movements within the government’s income streams. Oil-related revenue rose by 22% to 185.1 billion riyals in the quarter. Non-oil revenue also increased, but at a slower pace - up 3% to 153.7 billion riyals during the same period. Together, oil and non-oil receipts sum to the reported total revenue figure for the quarter.
The ministry’s release provides a snapshot of the kingdom’s fiscal flows for the three months to June 30, presenting the principal headline numbers for spending, total receipts, and the resulting budget balance. The data point to a fiscal deficit in Q2 2026 even as government income rose year on year.
Summary
Saudi Arabia ran a budget deficit of 34.3 billion riyals in Q2 2026, with government spending up 11% to 373 billion riyals and total revenue up 12% to 338.784 billion riyals. Oil revenue grew by 22% to 185.1 billion riyals while non-oil revenue rose 3% to 153.7 billion riyals. The deficit is marginally higher than the 34 billion riyal shortfall recorded in Q2 2025.