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Abdulaziz Alfuraih, Chairman of Steering Committee at Ministry of Finance
Saudi Arabia’s Ministry of Finance had clear will and vision about the budgeting process methodology and requirements, Abdulaziz Alfuraih, Chairman of the Ministry’s Steering Committee, said in a statement.
Several components of the general framework for the budgeting process development were targeted, he added.
The components include participatory work with government agencies, recalling the challenges and lessons that arise during the implementation of enhancements, as well as the reassessment and continuation of methodology improvement, Alfuraih said.
He noted that the medium-term financial planning program would have a significant direct impact on improving the budgeting cycle. The budget design would not be limited to a 12-month cycle with its accompanying challenges, such as providing appropriate support for project stability and spending requirements, whose cycle takes more than a year.
Alfuraih said that the transition to accrual accounting is a key basis for enabling the government to monitor its financial operations in a way that enables it to prepare its financial position. It also serves as a performance management and evaluation tool.
According to data compiled by Argaam, the Ministry of Finance recently announced its 2022 pre-budget statement, estimating state revenues at SAR 903 billion, with a forecast expenditure of SAR 955 billion and a deficit of SAR 52 billion.
The ministry added that total revenue is forecast to grow to SAR 992 billion in 2024, while public expenditure is seen at SAR 951 billion. The Kingdom is expected to post a budget surplus of nearly SAR 27 billion as of 2023, and SAR 42 billion in 2024.
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