In 2024, Saudi Arabia’s budget deficit for the second quarter was SR15.34 billion ($4.09 billion), which means that the country’s first-half shortfall was 35% of the Ministry of Finance’s yearly prediction.
According to the most recent data, the Kingdom’s current year-to-date budget deficit is less than projected, suggesting either a change in fiscal policy or better than projected revenues in the first half of 2024.
The ministry’s quarterly performance report also showed that revenues, which came to SR353.59 billion, had increased by 12% from the same time last year. In the meantime, spending increased by 15% to SR368.93 billion.
The Kingdom’s yearly budget for 2024 was predicated on “extremely conservative” projections of oil revenue, according to Finance Minister Mohammed Al-Jaadan’s statement in December.
In spite of this conservative strategy, oil revenues increased by 18% to SR212.99 billion in the second quarter of 2024 as compared to the same period the previous year. In addition, non-oil receipts increased by 4% to SR140.6 billion.
The increase in crude oil prices over the past year is what’s responsible for the growth in oil revenues. Based on the closing price at the end of each month, the average price of crude oil in the second quarter of 2024 was around $76.69 per barrel, as opposed to $71.83 for the same time in 2023.
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