Saudi Arabia’s second-quarter 2026 budget report showed total revenues of SAR 338.7 billion, while government expenditures reached SAR 373 billion, resulting in a budget deficit of SAR 34.3 billion, down 0.7% compared with the same period last year.
The figures highlight continued fiscal performance supported by growth in both oil and non-oil revenues as the Kingdom advances its economic diversification agenda.
Oil and Non-Oil Revenue Growth
Oil revenues climbed to SAR 185 billion during the second quarter, marking a 28% increase compared with the first quarter and a 22% rise year over year.
Non-oil revenues reached SAR 154 billion, up 32% from the previous quarter and 3% compared with the second quarter of 2025, reflecting continued progress in diversifying government income.
First-Half Financial Performance
During the first half of 2026, total revenues amounted to SAR 599.6 billion, while expenditures reached SAR 759.8 billion, resulting in a cumulative deficit of SAR 160 billion.
Government spending during the second quarter declined by 3.6% compared with the first quarter to SAR 373 billion.
Reserves and Defense Spending
The report showed that the state’s general reserve balance stood at SAR 399 billion at the end of the first half of 2026.
Defense spending reached SAR 125 billion during the first six months of the year, representing 52% of the total annual allocation for the sector.
The latest figures reflect Saudi Arabia’s continued efforts to balance fiscal discipline with development spending while strengthening revenue diversification under its long-term economic strategy.
