Saudi Arabia reports first-quarter budget deficit of $15.65 billion

May 5 (Reuters) - Saudi Arabia's budget deficit widened significantly to $15.65 billion in the first quarter of 2025 from $3.30 billion a year before as oil revenues fell 18% to 149.810 billion riyals ($39.95 billion), its finance ministry said on Monday.

The world's top oil exporter and de-facto OPEC leader saw its total revenues drop 10% to 263.616 billion riyals in the first quarter, while its public spending rose 5% to 322.317 billion riyals.

Declining oil prices and voluntary production cuts have weighed on Saudi revenue in recent years as Riyadh pushes ahead with strategic spending on projects linked to Vision 2030, the kingdom's ambitious plan to overhaul its economy and wean off its dependence on oil.

The kingdom's non-oil revenues rose 2% in the first quarter from a year earlier to 113.806 billion riyals.

Real gross domestic product increased 2.7% year-on-year in the first quarter, flash estimates by the government's statistical authority showed on Thursday.

Saudi Arabia has predicted that GDP will grow by 4.6% in 2025, driven by non-oil activities. Still, low oil prices have dragged on the budget and the International Monetary Fund (IMF) recently revised down its estimates for the kingdom's GDP growth to 3% from an earlier estimated 3.3%.

Saudi Arabia was one of eight members of OPEC+ - which includes the Organization of the Petroleum Exporting Countries and allies led by Russia - that agreed in April to speed up a plan to phase out oil production cuts by hiking output in May and June.

Saudi officials are briefing allies and industry experts that the kingdom is unwilling to prop up the oil market with further supply cuts and can handle a prolonged period of low prices, Reuters reported late last month, citing sources.

The kingdom forecast a budget deficit of 101 billion Saudi riyals ($26.93 billion) in 2025 as it moves onward with its plan to boost growth and deliver on an economic transformation that requires hundreds of billions of dollars in investments.

Saudi public debt reached 1.329 trillion riyals in the first quarter of the year. The kingdom, which enjoys a low debt-to-GDP ratio and confidence from lenders, was among the largest emerging market debt issuers in 2024.

($1 = 3.7504 riyals)