Finance Ministry Issues A Press Release on State's Budget 4 Riyadh

Due to the recent excessive volatility of oil prices and to address potentially declining revenues, a budget support provision of SR 183 billion has been established to offer increased flexibility to redirect capital expenditures and operating expenditures on both ongoing and new projects according to national developmental priorities and to meet any emerging expenditure needs in line with mechanisms and procedures of relevant royal decrees.

In addition, government development funds (Saudi Industrial Development Fund, Saudi Fund for Agricultural Development, Real Estate Development Fund and the Saudi Credit and Saving Bank) are expected to continue delivering on their respective roles in financingdifferent development projects by more than SR 49.9 billion.

Third: Economic, Fiscal, and Structural Reforms

The budget has been prepared in accordance with the Government Financial Statistics (GFS) of 2001/2014, which the Ministry has been working on as part of its efforts to review the state budget and its appropriations in order to make it more responsive to the transparency requirements, with the aim of delivering the right analysis of the government fiscal policy and maximizing its overall impact on economy. This has necessitated the re-classification of the general budget items in a way that fulfils these goals and ensures the formulation of a framework allowing for the implementation of best accounting rules and the provision of more comprehensive data. 3,500 government employees were trained to implement these practices.

The budget for the next fiscal year 1437/1438 is adopted in light of very low oil prices, as average rates for 2015 declined by more than 45 percent from the average of 2014 and continued to decline into 11-year record low in the last few weeks. This budget also comes amid challenging international and regional economic and financial conditions, namely a globaleconomic slowdown in growth.

Based on the highly esteemed directives of the Custodian of the Two Holy Mosques to conduct comprehensive economic, fiscal, and structural reforms and to work on strengthening public finances, enhancing sustainability over the medium and long terms and continuing to adopt necessary development projects and services for economic growth, the following measures will be implemented:
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17:51 LOCAL TIME 14:51 GMT