Saudi Budget Defies Oil Slump With More Spending and More Debt

Saudi Arabia is doing something that might seem confusing; it’s spending more, borrowing more, and pushing ahead with massive economic projects, even though oil prices are far too low to balance the budget. According to the new 2026 budget outline released on Tuesday, Riyadh plans to spend 1.3 trillion riyals (about $350 billion) next year and keep it at roughly that level through 2027. That kind of spending locks in a deficit of about 3.3% of GDP in 2026. But here’s the part many outsiders miss: in Saudi Arabia, deficits are not viewed…