King Abdullah issued three royal decrees on 2012 state budget

December 26, 2011

The Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al-Saud today  issued three royal decrees on the state's budget for Fiscal Year 1433/1434H (FY 2012).

First Royal Decree

The State’s revenues for Fiscal year 1433/1434 (FY 2012) are estimated at SR702 billion ($187.2 billion).  The expenditures for FY 1433/1434 (FY 2012) amounts to SR 690 billion ( $184 billion).

Revenues shall be levied according to financial regulations and deposited into the accounts of the Ministry of Finance at Saudi Arabian Monetary Agency (SAMA).

The Minister of Finance is authorized to withdraw from this account to replenish the expenditures on the projects currently financed from the surpluses of the fiscal years extending from 1424H to 1433H.  Expenditures are disbursed according to the budget and relevant directives.  Budget surplus shall be returned to the state reserves.  No withdrawals are allowed from it unless they are authorized by a royal decree in the highest interest of the state.

The Minister of Finance is authorized to borrow and transfer from the states reserves, as deemed necessary, to settle public debt and cover the budget deficit.

The transfers from a budget's accredited chapter or branch could take place according to a decision by the Minister of Finance based on a joint report between him and the relevant minister or head of an independent budget authority.  The transfers between appropriations in the budget's chapters could take place by a decision of the Minister of Finance.  Transfers between articles in chapters 1 and 2 and yearly programs of operation and maintenance in chapter 3 shall be decided by the relevant minister or head of independent budget authority.  Transfers between costs of programs of operation and maintenance in chapter 3 and projects in chapter 4 shall be decided by Minister of Finance.

Appropriations shall not be used for non-assigned purposes and it is not allowed to issue a commitment or expenditure order exceeding appropriations or commitment to any expenditure having no allocations in the budget.

It is not allowable to issue a decision or conclude a contract that incurs commitments to the next fiscal year. Exceptions are as follows:

  • Continual and periodical execution contracts such as contracts of lease, labor, services, supplies, medicines, medical requirements, and consultant services which have yearly appropriations.
  • Import contracts approved in the chapter requiring contracting for more than a year. The cost of the contract shall be within the budget's appropriations.
  • Contracts of programs of operation and maintenance and execution of projects on condition of committing to the approved costs of each program and project.

If it appeared during Fiscal Year 1433/1434 that there are amounts committed during the previous years, the topic shall be submitted to the President of Council of Ministers if the amounts resulted from unjustifiable act, then the Minister of Finance or his deputy can allocate the amounts from appropriations of the Fiscal Year 1433/1434H.

Administrative formations for each body shall be approved as issued by the state's budget and cannot be amended except by a decision to be issued by Supreme Committee for Administrative Reform or a decision based on the decision of Ministerial Administrative Organizational Committee.

The appointment or promotion of government personnel, workers and laborers is not allowed unless for jobs approved in the budget.

No new positions or ranks shall be created except for what is allocated in the budget. The appointment of ministers and posts to be created according to conditions included in temporary job regulation shall be exempted from the previous article.  It is not allowed to promote the ranks approved in the budget.

Changes in job titles, classifications, and demotion of ranks shall be decided by the Minister of Civil Service based on a recommendation of a committee formed by representatives of Ministry of Finance, Ministry of Civil Service and the relevant body.

The Minister of Finance shall transfer approved jobs between chapters of the budget and inside administrative formation based on a recommendation of a committee formed by representatives of Ministry of Finance, Ministry of Civil Service and the relevant body.

Auditing bodies shall follow up application of effective regulations and relevant decisions and instructions.
The Minister of Finance shall issue the instructions required for implementation of this budget within the rules stated in this decree.
The Deputy Premier, Ministers and Heads of Concerned Independent Bodies shall, each according to his authority, implement this decree.

Second Royal Decree

Revenues and expenditures of governorates, municipalities and rural compounds

First:
The expenses of municipalities and rural compounds for the Fiscal Year 1433/1434H are estimated at SR27,836,735,000 ($7,423,129,333).

Second:
The revenues of governorates, municipalities and rural compounds for the Fiscal Year 1433/1434H are estimated at SR3,665,790,000 ($977,544,000).

Third:
The difference between direct revenues and expenditures amounted to SR24,170,945,000 ($6,445,585,333) shall be approved in the State's general budget.

Fourth:
The expenditures shall be disbursed in accordance with the applicable financial regulations and instructions.

Fifth:
Governorates, municipalities and rural compounds shall levy their revenues in accordance with applicable regulations and instructions and the concerned bodies shall follow-up the implementation of this.

Sixth:
Transference of articles' surplus of the governorates and municipalities to other governorates and municipalities shall only be authorized by the consent of President of Council of the Ministers upon the recommendation of the Minister of Municipal and Rural Affairs and Minister of Finance.

Seventh:
The Minister of Finance shall issue the necessary instructions for implementation within regulations set forth in this Decree.

Eighth:
The Deputy Prime Minister, Minister of Municipal, Rural Affairs and Minister of Finance each according to his authority, implement this Decree accordingly.

Third Royal Decree

First:
Revenues and expenditures of general organizations whose budgets are annexed to the State's general budget for FY 1433/1434H, are estimated as follows:

  1. Revenues of Saudi Ports are estimated at SR3,000,000,000 ($800000000) and approved expenditures at SR1,710,112,000 ($456,029,867).
  2. Revenues and expenditures of General Organization of Saudi Arabian Airlines are estimated at SR20,413,000,000 ($5,443,466,667).  The General Organization of Saudi Arabian Airlines levies its revenues and runs its expenditures according to its own system.
  3. Revenues of General Organization of Grain Silos and Flour Mills are estimated at SR1,650,000,000 ($440,000,000)and approved expenditures at 1,914,700,000 ($510,586,667).
  4. Revenues and expenditures of Saline Water Conversion Corporation are estimated at SR15,461,250,000 ($4,123,000,000).
  5. Revenues and expenditures of General Organization of Railways are estimated at SR1,765,354,000 ($470,761,067).
  6. Revenues and expenditures of Royal Commission of Jubail and Yanbu are estimated at SR8,099,817,000 ($2,159,951,200).
  7. Revenues and expenditures of Saudi Standards and Quality Organization are estimated at SR 183,718,000 ($48,991,467).
  8. Revenues and expenditures of Saudi Arabian General Investment Authority are estimated at SR154,650,000 ($41,240,000).
  9. Revenues and expenditures of King Saud University are estimated at SR8,625,531,000 ($2,300,141,600).
  10. Revenues and expenditures of King Abdulaziz University are estimated at SR4,471,343,000 ($1,192,358,133).
  11. Revenues and expenditures of King Fahd University of Petroleum and Minerals are estimated at SR1,244,857,000 ($331,961,867).
  12. Revenues and expenditures of Imam Mohammed bin Saud Islamic University are estimated at SR2,850,708,000 ($760,188,800).
  13. Revenues and expenditures of Islamic University are estimated at SR828,432,000 ($220,915,200).
  14. Revenues and expenditures of King Faisal University are estimated at SR1,856,486,000 ($495,062,933).
  15. Revenues and expenditures of Umm Al-Qura University are estimated at SR2,189,612,000 ($583,896,533).
  16. Revenues and expenditures of King Khalid University are estimated at SR3,048,378,000 ($812,900,800).
  17. Revenues and expenditures of Taibah University are estimated at SR1,619,145,000 ($431,772,000).
  18. Revenues and expenditures of Al-Qassim University are estimated at SR1,970,324,000 ($525,419,733).
  19. Revenues and expenditures of Al-Taif University are estimated at SR1,554,903,000 ($414,640,800).
  20. Revenues and expenditures of Jazan University are estimated at SR1,429,004,000 ($381,067,733).
  21. Revenues and expenditures of Jouf University are estimated at SR1,022,584,000 ($1,363,445,333).
  22. Revenues and expenditures of Hail University are estimated at SR1,039,257,000 ($277,135,200).
  23. Revenues and expenditures of Tabuk University are estimated at SR986,593,000 ($263,091,467).
  24. Revenues and expenditures of Baha University are estimated at SR 769,328,000 ($205,154,133).
  25. Revenues and expenditures of Najran University are estimated at SR766,348,000 ($204,359,467).
  26. Revenues and expenditures of Northern Border University are estimated at SR724,617,000 ($193,231,200).
  27. Revenues and expenditures of Princess Norah bint Abdulrahman University are estimated at SR1,173,794,000 ($313,011,733).
  28. Revenues and expenditures of Dammam University are estimated at SR2,367,529,000 ($631,341,067)
  29. Revenues and expenditures of Prince Salman bin Abdulaziz University are estimated at SR812,116,000 ($216,564,267).
  30. Revenues and expenditures of Al-Majma'a University are estimated at SR493,083,000 ($131,488,800).
  31. Revenues and expenditures of Shaqra University are estimated at SR759,030,000 ($202,408,000).
  32. Revenues and expenditures of the Technical and Vocational Training Corporation are estimated at SR4,795,289,000 ($1,278,743,733).
  33. The revenues and expenditures of King Abdulaziz City for Science and Technology are estimated at SR1,797,513,000 ($479,336,800).
  34. The revenues and expenditures of Institute of Public Administration are estimated at SR519,319,000 ($138,485,067).
  35. The revenues and expenditures of King Faisal Specialist Hospital and Research Center at SR4,983,000,000 ($1,328,800,000).
  36. The revenues and expenditures of Saudi Red Crescent Authority are estimated at SR1,704,663,000 ($454,576,800).
  37. The revenues and expenditures of Military Industries Corporation are estimated at SR1,968,528,000 ($524,940,800).
  38. The revenues and expenditures of Saudi Geological Survey are estimated at SR216,150,000 ($57,640,000).
  39. The revenues and expenditures of Saudi Commission for Tourism and Antiquities are estimated at SR511,250,000 ($136,333,333).
  40. The revenues and expenditures of Communications and Information Technology Commission are estimated at SR890,000,000 ($237,333,333).
  41. The revenues and expenditures of Saudi Food and Drug Authority are estimated at SR686,100,000 ($182,960,000).
  42. The revenues and expenditures of Saudi Post are estimated at SR2,277,359,000 ($607,295,733).
  43. The revenues and expenditures of General Authority of Civil Aviation are estimated at SR15,456,693,000 ($4,121,784,800).
  44. Revenues and expenditures of Human Rights Commission are estimated at SR84,162,000 ($22,443,200).
  45. Revenues and expenditures of General Survey Authority are estimated at SR409,331,000 ($109,154,933).
  46. Revenues and expenditures of King Abdullah City for Atomic and Renewable Energy are estimated at SR500,000,000 ($133,333,333).

Second:
The surplus of revenues as well as the unused accredited amounts of the general budget shall be deposited in the current account of the Ministry of Finance at the Saudi Arabian Monetary Agency (SAMA).

Third:
Revenues and expenditures shall be levied and disbursed in accordance with the applicable regulations and instructions.

Fourth:
With the exception of the General Organization for Saudi Arabian Airlines, the budgets of other general organizations shall be governed by the provisions provided for in Articles 3,7,8,9,10,11,12,13,14 and 5 of the Royal Decree No. M/ dated 1 Safar 1433H (26 December 2011) approving the general budget of the State for the Fiscal Year 1433/1434H.

Fifth:
The Minister of Finance shall issue the necessary instructions to implement the stipulations in this decree.

Sixth:
The Deputy Prime  Minister, Ministers and Heads of Authorities with independent budgets shall implement these decrees in accordance with their specific authorizations.

The decision of the Council of Ministers No. 22 of 1 Safar 1433H (26 December 2011), approved state budget for Fiscal Year 1433/1434H (FY 2012) and stated that all government agencies should not exceed budget appropriations and nor commit to any expenditure that has no allocation.  In this regard, Council of Ministers decision No. 157 of 9 Dhu al-Hijjah 1420H (14 March 2000), should be applied. In the case of an emergency that cannot be deferred, the matter should be forwarded to the Custodian of the Two Holy Mosques in accordance with Article 73 of the Basic Law and Article 27 of the Regulations of the Council of Ministers.

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