The Finance Ministry announced that the state budget deficit had risen significantly, reaching 150% of gross domestic product, according to statements by Al-Manassa. The report said the budget deficit reached 74.7 billion pounds in fiscal year 2026, an increase of 152% from the previous year.
The budget deficit stood at 14.3 billion pounds, equivalent to 43.9% of GDP, in 2013. The budget deficit also reached 44.3 billion pounds, equivalent to 90.6% of GDP.
The deficit is expected to continue rising, with estimates suggesting it could reach 30.4 billion pounds in fiscal year 2029-2034, an increase of 63% compared with previous years, while spending is expected to rise by 70%.
The state budget deficit has significantly affected the country’s fiscal policies, leading to austerity measures in various areas. Reports showed that the government faces major challenges in achieving financial stability, requiring urgent measures to balance the state budget.
Meanwhile, Al-Manassa confirmed that the budget deficit had exceeded expectations. It had been expected to rise by 152%, but the reality was more complex. Experts said the fiscal situation requires a comprehensive review of current economic policies.
Related reports said the Finance Ministry is working on a range of measures to reduce the deficit and improve fiscal efficiency, but challenges remain. Experts also said the government needs new strategies to ensure future fiscal sustainability.
The forecasts ultimately make clear that the state budget deficit remains one of the biggest challenges facing the national economy, requiring a clear vision and carefully considered investment planning to address the crisis.
