Saudi Arabia’s Budget Deficit Soared Even Before Oil’s Slump

Saudi Arabia’s budget deficit ballooned in the first quarter, even before oil’s latest drop put additional pressure on the kingdom’s finances.

The kingdom posted a fiscal deficit of 58.7 billion riyals ($15.7 billion), the highest figure since late 2021 and already well over half the government’s expected gap for 2025 of 101 billion riyals. The deficit was funded by borrowing rather than drawing down the central bank’s foreign reserves.