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Finance Ministry: ‘2018 State Budget Sign that Saudi is on Right Track’

Finance Ministry: ‘2018 State Budget Sign that Saudi is on Right Track’

Monday, 18 December, 2017 - 13:00

Riyadh- Saudi Deputy Minister of Budget and Organizational Affairs in the Ministry of Finance Yaser al-Quhidan said that the state budget for 2018, which will be announced on Thursday, is evidence that “we are on track to manage our economy effectively despite difficult international circumstances.”

He said the expected announcement confirms the approach adopted by the Saudi government in enhancing transparency and improving the standards of financial disclosure as one of the pillars of its strategy in the framework of achieving the program of financial balance within the objectives of the Saudi Vision 2030.

"The ministry of finance introduced this year changes to the budget process to improve financial disclosure and ensure the highest levels of transparency in revealing financial records," he added.

He pointed out that the budget statement for this year is a reflection of the new policy adopted by the Ministry, which takes into account a variety of economic and financial considerations.

The new measures introduced this year, he said, include the development and implementation of a medium-term fiscal framework to improve the risk management process and identify policies to be implemented over the medium term through measurable targets, the introduction of a unified account of the treasury for a better management of cash resources and the transition from accounting on a cash basis to accrual accounting.

Quhidan noted that these measures required holding workshops to discuss the preparation of the budget in accordance with this mechanism in the presence of more than 400 participants from 30 government agencies, whose budgets represent 80 percent of the state budget.

These measures also contributed to increasing the efficiency of preparing the budget and improving financial control and measuring performance, Quhidan stated.

“The accounts mentioned in the 2018 budget statement will be classified in line with the Government Finance Statistics Manual 2014, a classification based on international standards issued by the International Monetary Fund,” Quhidan explained.

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