1、SAUDI ARABIASBUDGET REPORT2025DECEMBER 2024CONTENTSThe Key Takeaways IntroductionSummary Review of 2024Fiscal PerformanceEconomic Performance2025 Budget at a Glance2025 Macro Assumptions&Outlook2025 Fiscal OutlookLooking aheadBudget dashboardReferences0304050507101214192122STRATEGIC GEARS|SAUDI ARAB

2、IAS 2025 BUDGET REPORT|02STRATEGIC GEARS|SAUDI ARABIAS 2025 BUDGET REPORT|03The rising public spending and widening fiscal deficit over the medium term,estimated at 2%of GDP for 2025,is manageable and reflects Saudi Arabias tolerance for a moderate debt burden to deliver on Vision 2030 targetsTotal

3、expenditure is projected at SAR 1,285 billion,with over half allocated to military,health,and education sectors.The mission to diversify the states income streams away from oil remains,with non-fossil income having contributed 38%of total revenues in 2024 and VAT and income taxes forecast to grow by

4、 a rate 2-to-3%in 2025.Among the budgets high priorities is tourism,with the introduction of VAT deductions for tourists seeking to reinforce the National Tourism Strategy and increase domestic and international tourist influx to 127 million and tourism spending to around SAR 347 billion.The budget

5、allocation for wages is still growing at a faster pace than for capital expenditure and currently represents over 50%of the total 2025 budget.Despite the rise in public spending and private sector consumption,inflation is forecast to remain at a stable 1.9%in 2025,among the lowest globally.Saudis st

6、rong fiscal position is echoed by a buffer of reserves,a sustainable public debt level,and a reassuring credit profile,which should provide affirmations for investor confidence.THE KEY TAKEAWAYSNational budgets are fundamental governance tools that determine how economies will collect and spend mone