Saudi Arabia has been working hard on diversifying its economy and adding value to its domestic product meanwhile the executive regulation of the state revenue system has supported investment opportunities for government resources, boosting non-oil revenues and economic growth.
In this regard, the executive regulation of the state revenue system has become a milestone on the map of the optimal investment in government resources, following its amendment.
The new regulations stipulate that the government agencies must develop their investment of land, real estate, etc. in order to benefit from the programs and systems to develop and monitor their investments and use experts and consulting offices to provide studies for the development of investments in accordance with statutory procedures.
The new amendments, which were announced Friday, said that the government agency of the Ministry of Finance would provide its estimated revenues for each fiscal year, 120 days before its commencement.
The estimates provided by the entity, however, should include a statement of cash and withholding revenues, statistics supporting the calculation of estimates for each income account for at least two previous fiscal years, the factors affecting the preparation of the estimates, the reasons for the increase or decrease in the estimates and the actual statement for the previous three fiscal years, detailed for each year and for each income collected.
The executive regulation of the state revenue system confirmed that the Ministry of Finance has the right to invite officials and specialists to discuss the estimates submitted by the entity, amend them and inform it of the adopted estimates.
The regulation indicated that after ascertaining that the entity has achieved an increase in its revenues, the Ministry of Finance shall allocate 20 percent of the increase achieved within its budget appropriations during the next fiscal year under the condition that no more than five percent of the total original appropriations shall be allocated to the budget of the entity for the previous financial year.
Notably, the appropriations shall be allocated for the following purposes: not more than 30 percent to reward employees, who contributed to the increase in revenues and not more than 30 per cent for development of investments while the regulation indicated that the remainder is allocated in other appropriations to the budget of the entity.