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Royal Decree on the State's General Budget for the Fiscal Year 2022 Issued

Royal Decree on the State's General Budget for the Fiscal Year 2022 Issued
12 Dec

NEOM, SPA:
The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud issued a royal decree today on the State's General Budget for the Fiscal Year 2022, stating the following:
First: State's revenues are estimated and expenditures are approved for the fiscal year 2022 as follows:
1- Revenues are estimated at 1,045,000,000,000 Saudi Riyals.
2- Expenditures are approved at 955,000,000,000 Saudi Riyals.
3- Surplus is estimated at 90,000,000,000 Saudi Riyals.
Second: Revenues shall be levied according to financial regulations and all to be deposited in the current account of the Ministry of Finance at the Saudi Central Bank.
Third: The Minister of Finance is authorized to issue debt instruments, all kinds of Sukuk, borrowing, and financing in all its forms, whether locally or internationally, regarding any of the following:
1- Covering the Budget deficit, that may occur, in the State's General Budget for the Fiscal Year 2022
2- Strengthening the state's general reserve account, if necessary
3- Financing approved capital projects whose costs are embodied in the budget
4- Refinancing debts due in the fiscal year 2022 or subsequent fiscal years
5- Financing the payment of explicit and implicit government guarantees
6- Financing the payment of financial obligations that are not classified as budget expenditures, including the capital of development funds, in respect of which royal orders or decrees are issued.
Fourth: The Minister of Finance is authorized to withdraw from the State's General Reserve account in the following:
1- Covering the Budget deficit, that may occur, in the State's General Budget for the Fiscal Year 2022
2- Financing the payment of explicit and implicit government guarantees
3- Financing the payment of financial obligations that are not classified as budget expenditures, including the capital of development funds, in respect of which royal orders or decrees are issued
4- Connecting part of the reserve amounts to deposits with local banks to enhance liquidity or reduce borrowing costs, provided that they are included within the State’s Total General Reserve.
Fifth: Authorizing the Minister of Finance to approve the following:
1 - Borrowing by government agencies whose budgets are attached to the State’s general budget, including the debt instruments, all kinds of Sukuk, and financing in all its forms, whether locally or internationally.
2 - Issuance of explicit and implicit guarantees, whether conditional or unconditional, by government agencies whose budgets are attached to the State’s general budget.
3- Issuance of explicit and implicit guarantees, whether conditional or unconditional, to government agencies whose budgets are attached to the State’s general budget to support other entities that are not attached, and in order to support the borrowing of those entities or cover the financial obligations of those entities.
4- Granting the government agencies referred to in this item the powers and exceptions referred to in Clause (Eleventh) of this Decree, or granting them part of these powers and exceptions according to the limits or restrictions issued by the minister in each individual case, in relation to these authorities’ implementation as per Paragraphs 1, 2 and 3 of this Clause.
Sixth: Authorizing the Minister of Finance to issue explicit and implicit guarantees, whether conditional or unconditional, to the government agencies whose budgets are attached to the State’s general budget or other agencies whose budgets are not attached, in order to support the borrowing of those entities or cover their financial obligations.
Seventh: With the exception of what is stated in Clauses (fifth) and (sixth) of this decree, and in order to raise the efficiency of the public debt management, the following measures are prohibited:
1 - Borrowing of government agencies, whose budgets are attached to the State’s general budget or which receive a subsidy from it, or issue any kind of debt instruments, or issue all kinds of Sukuk, or issue any guarantee that entails a potential obligation.
2 - Supporting government agencies, whose budgets are attached to the State’s general budget or which receive a subsidy from it, for other agencies, or issuing any guarantee regarding any of their obligations or amounts they borrow, whether by obtaining loans, issuing debt instruments and Sukuk or any other means of borrowing.
3- Supporting government agencies, whose budgets are attached to the State’s general budget or which receive a subsidy from it, for any agency in any financing form, including issuing any guarantee to support borrowing or obligations, unless prior written approval is obtained from the Minister of Finance before borrowing or starting the contractual arrangements from which those obligations arise.
Eighth: 1- The surplus of revenues of the State’s general budget to be transferred to the State's general reserve account.
2- During the fiscal year, the Minister of Finance is authorized, with the exception of paragraph (1) of this Clause, to:
A- Allocate the collected revenues excessing the estimated revenues or part of them which are deposited in a current account of the Ministry of Finance, in implementation of Royal Order No. (55685) dated on 30/11/1438AH and the directive stated in the Royal Court Circular Telegram No. (33901) dated on 20/06/1442AH, for government entities, whose revenues have been estimated in this year's budget or which have been included in the budget during this year, whose rules or regulations show ways of financing their expenditures from their revenues, in order to achieve sustainability and efficiency of spending.
B – Approve and add the incentives resulting from government agencies achieving an increase in their revenues, based on Royal Decree No. (15076) dated on 8/3/1443AH to extend the work of mechanisms to develop the government agencies’ revenues, and Article (fifth) of the State Revenue Law issued by Royal Decree No. (M/68) dated on 18/11/1431 H.
Ninth: It is not permissible to withdraw from the State's general reserve except in accordance with the regular procedures prevailed, without prejudice to what is stipulated in clause (Fourth) of this decree.
Tenth: 1 - In the event of amounts due to be paid during previous fiscal years, government agencies are obligated to spend them no later than the end of the second month of the fiscal year 1443/1444 H, and to make the necessary transfers in their budgets to disburse these amounts, and that the annual report of the government agency has to include details of what has been done, and that the General Court of Audit should follow up the extent of the commitment of government agencies and report it to take the appropriate legal measures against the violating agencies.
2 - The Minister of Finance is authorized to arrange and add the necessary appropriations to pay dues that are not matched by sufficient appropriations in the items of the State's general budget, taking into account the approved expenditure ceiling.
3- The Minister of Finance is authorized to arrange and add the costs resulting from tax differences in contracts, costs necessary for alternative contracts, and costs resulting from the extension or transfer of projects according to the regulations and instructions issued in their regard.
4 - The competent minister or head of the body with an independent budget shall submit all contractual obligations on Etimad Platform, whether they are contracts or letters of award, including contracts and letters of award that are excluded from the Government Tenders and Procurement Law, in accordance with the controls contained in the instructions for implementing the State’s general budget and the financial and accounting instructions, and that the annual report of the government agency shall include details of what has been done, and that the General Court of Audit shall follow up the extent of the commitment of government agencies and report it to take the appropriate legal measures against the violating agencies.
Eleventh: Until the end of the fiscal year 1443/1444 H, working with paragraphs (2-A) and (2-B) shall be continued, as well as any type of establishments and investment funds, and (2-C) and (2-D) of item (Fourth) from the Royal Decree No. (M/40) dated 30/4/1442 H.
Twelfth: Until the end of the fiscal year 1443/1444 H, working with items (Third), (Tenth), (Eleven), (Twelfth), and(Fourteenth) shall be continued, as that they include the powers mentioned in paragraph (3) (The levels), and that the formation of the committee shall be from representatives from the Ministry of Human Resources and Social Development and the Ministry of Finance, as well as (Fifteenth), (Sixteenth), and (Seventeenth), from the Royal Decree No. (M/40) dated 30/4/1442 H.
Thirteenth: The Minister of Finance is authorized to authorize whomever he deems appropriate from the employees of the Ministry of Finance and the National Center for Debt Management with some of the powers granted to him in accordance with this decree and the paragraphs referred to in item (Eleventh).
Fourteenth: His Royal Highness the Deputy Prime Minister, ministers and heads of agencies with independent budgets attached to the State’s general budget, each within his jurisdiction, must implement this decree.
Salman bin Abdulaziz Al Saud

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