Al-Jadaan warns against confusing between good, bad budget deficits

Finance Minister Mohammed Al-Jadaan said good and bad budget deficits should not be confused. The latter does not achieve any growth but increases the accumulation of future liabilities.

"Even if you borrow and spend, borrowing and spending will lead to more burdens, as you are simply creating irrevocable obligations, whether they are government operating expenses or other expenses," the minister added, speaking at the AlUla Conference for Emerging Market Economies 2026.

On the contrary, a good deficit is one that finances projects of importance that stimulate growth such as infrastructure, logistics, airports, ports, rail networks, and others that encourage increased private sector investment and contribute to reducing the cost of financing.