Saudi Government Spending Rises 11% in Q2 2026

Government spending in Saudi Arabia rose 11% year-on-year in the second quarter of 2026, reaching about 373 billion riyals, Spending in the same period of 2025 stood at roughly 336 billion riyals.

Total budget revenues climbed 12% year-on-year to about 338.7 billion riyals, up from around 302 billion riyals a year earlier. With outlays exceeding revenues, the quarter recorded a deficit of roughly 34.3 billion riyals. Compared with the previous quarter, spending eased about 3.6%, down from around 386.8 billion riyals in Q1 2026.

Oil revenues reached about 185.1 billion riyals, a 22% increase from around 151.7 billion riyals a year earlier. Non-oil revenues also grew, with taxes on income, profit and capital gains rising about 9% to 15 billion riyals from 13.7 billion riyals.

Where the money goes

Compensation of employees was the largest expenditure item at about 144.37 billion riyals, up roughly 3% year-on-year. Spending on goods and services reached about 74.28 billion riyals, up around 1%, while social benefits rose 8% to about 42.45 billion riyals.

For the first half of 2026, budget allocations included 125 billion riyals for the military sector, 171 billion riyals for health and social development, and about 110 billion riyals for education.

For residents and businesses, the figures point to sustained public investment across health, education and social support, alongside continued spending on major development programs. Steady social benefits and strong non-oil revenue growth signal ongoing efforts to broaden the economy beyond oil.

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