Key insights
- Saudi Arabia's Q1 budget deficit of $33.5B, driven by increased government spending and a slight dip in oil revenues, presents a marginal bearish signal for US equities. Higher military spending and potential shifts in Saudi fiscal policy could indirectly influence global oil markets, potentially impacting US energy companies and inflation expectations.
Investing.com -- Saudi Arabia reported a budget deficit of 125.7 billion riyals ($33.5 billion) in the first quarter of 2026, driven by a 20% jump in government spending while revenues fell slightly compared to the same period last year, the finance ministry said Tuesday.
Total government spending reached 386.7 billion riyals in the quarter, exceeding revenues of 261.0 billion riyals, according to state television.
Oil revenues dropped 3% to 144.7 billion riyals from 149.8 billion riyals in the first quarter of 2025, state media reported.
Non-oil revenues climbed 2% to 116.3 billion riyals from 113.8 billion riyals a year earlier.
Military spending rose 26% to 64.7 billion riyals compared with 51.4 billion riyals in the first quarter of 2025, the finance ministry said.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.