The Saudi Ministry of Finance is planning to include 79 entities in the treasury in 2021, as officials finalize the last phase of establishing the independent unit at the ministry.
The treasury management project stems from the Fiscal Balance Program, one of the executive programs aimed at achieving the Kingdom’s Vision 2030.
The project seeks to improve cash and liquidity management through consolidating all revenues, centralizing all expenditures and establishing an efficient structure for financing expenditures.
It will seek to avoid the accumulation of unused cash balances in the bank accounts of government agencies that do not earn any return.
This will ensure effective cash management to facilitate the fiscal planning process, efficiency of financing and improve future visibility, as well as enhance the transparency of government fiscal resources.
The ministry will improve and develop the technical system and make use of artificial intelligence in business development on the medium-term. In addition, it will complete the Treasury Single Account (TSA) initiative after applying the unified account concept to all government agencies.
The account will help increase the effectiveness of controlling government resources, maximizing non-oil revenue sources and reducing the cost of borrowing, in addition to increasing returns on money invested.
This will be enhanced through the effective use of surplus and unused cash balances, support to simplify business and the movement of cash between accounts, monitoring of revenues, ease of setting and achieving goals and speeding up payment processing, expenditures and decision-making processes.
In addition, the Ministry seeks to activate the role of Transformation Partners in 2021 and enable them to follow up and implement the initiatives related to the transformation at the government agencies.
The work will extend beyond 2020 and in the medium-term, for three years.
Initiatives related to the transition at the level of government agencies and the MoF will also continue in order to build the financial position of the Kingdom and then the consolidated fiscal statements in December 2023.
Meanwhile, the Supervisory and Compliance Department will be made functional in 2021. It is responsible for evaluating regulatory frameworks and activating control self-assessment in government agencies.
It will also initiate the Central Control Department responsible for evaluating systems with a financial impact and analyzing their data.
