Saudi Arabia’s non-oil revenues rose 26.09 percent to SAR140.6 billion ($37.48 billion) in the second quarter of 2024 from SAR111.51 billion during the first quarter of the year, reported the Ministry of Finance in its Q2 2024 budget. Oil revenues also saw a significant 17.08 percent rise to SAR212.99 billion ($56.77 billion) from the first quarter’s SAR181.92 billion.
Expenditures rise
Saudi Arabia’s budget deficit for Q2 reached SAR15.34 billion, bringing the total deficit for the first half of 2024 to SAR27.73 billion. The report reveals that revenues rose 12 percent to SAR353.59 billion while expenditures rose by 15 percent to SAR368.93 billion.
Saudi Arabia’s expenditures included employee compensations, which reached SAR139.85 billion in Q2 of 2024. Use of goods and services amounted to SAR75.56 billion while expenditures on non-financial assets reached SAR64.96 billion. Social benefits accounted for SAR39.21 billion, other expenses reached SAR24.22 billion, subsidies hit SAR12.98 billion, and financing expenses accounted for SAR10.78 billion of Saudi Arabia’s expenditures.
Non-oil revenues
Saudi Arabia’s non-oil revenues came from several sectors. Taxes on goods and services accounted for SAR70.13 billion, other classified revenues reached SAR27.66 billion, and other taxes reached SAR24.51 billion. Meanwhile, taxes on income, profits and capital gains contributed SAR12.85 billion, and taxes on trade and international transactions contributed SAR5.46 billion.
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Impact of oil prices
The government forecasts a budget deficit of SAR79 billion for the whole year. The International Monetary Fund (IMF), which cut Saudi Arabia’s economic growth forecast to 1.7 percent earlier this month, has estimated that the Kingdom needs oil prices to reach $96.2 to balance its 2024 budget.
Despite the OPEC+ oil production cuts, average oil prices in Q2 of 2024 rose to $76.69 per barrel from $71.83 in Q2 of 2023, contributing to the surge in Saudi Arabia’s oil revenues.
To cover its financing needs, Saudi Arabia has already raised $17 billion from the public debt markets this year. Aramco and PIF, the country’s sovereign wealth fund, have also raised significant amounts from bonds so far this year.
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