Deputy Custodian of the Two Holy Mosques announces new state budget during cabinet session

New budget hits SR 580 billion, with an increase of SR 40 billion compared to last budget

Prince Sultan: Budget reflects Custodian of the Two Holy Mosques’ keenness to enhance march of development, offer more jobs for citizens

Public debt to go down to nearly SR 167 billion by end of current fiscal year

In its session held under the chairmanship of Deputy Custodian of the Two Holy Mosques Prince Sultan bin Abdulaziz Al Saud at Al-Yamamah palace in Riyadh, the 14th of Muharram 1432 H. corresponding to the 20th of December 2010, the Council of Ministers approved the national budget for the fiscal year 1432AH - 1433AH.

At the outset of the session, verses from the holy Quran were recited.

Then the Deputy Custodian of the Two Holy Mosques Prince Sultan bin Abdulaziz Al Saud delivered an introductory address to the citizens, announcing the budget.

The following is the text of the speech:

'In the Name of Allah Most Gracious Most Merciful,

Thanks to Allah Almighty and Prayers and Peace be Upon our Prophet Mohammed and all his Companions; Alsalamu Alaykum Warahmatu Allahi Wabarakatu.

Thanks to God Almighty and with His support, we announce on behalf of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz the national budget for the new fiscal year which has amounted to SR 580,000,000,000, an increase of SR40,000,000,000 over the previous budget, reflecting the monarch's keenness to enhance the march of development and provision of more jobs for citizens.

I am pleased to avail myself of this opportunity to convey the greetings of the Custodian of the Two Holy Mosques to members of his people and his wishes that this budget bestow more blessings and good on the nation and nationals.

Looking forward to seeing the Custodian of the Two Holy Mosques back at home among his people in good health, we hereby instruct all government officials to abide by the monarch's instructions to get this budget strictly implemented with all sincerity and earnestness for the prosperity of the nation.

Wassalamu Alaykum Warahmatu Allahi Wabarakatu.'

Then, the Secretary General of the Cabinet Abdulrahman bin Mohammed Al-Sadhan read the royal decrees on the national budget for the fiscal year 1432/1433H.

In a statement to Saudi Press Agency (SPA) following the session, the Minister of Culture and Information Dr. Abdulaziz bin Mohieddin Khoja said that upon a directive of the Deputy Custodian of the Two Holy Mosques, the Minister of Finance gave a brief overview on the global economic conditions and their impact on oil revenues and the general revenues of the state as well as the local economic developments and financial results for the current fiscal year 1431/1432H, in addition to the main features of the new budget.

The Minister of Finance said that according to the Department of Statistics and Information, the Gross Domestic Product (GDP) for this year 1431/1432H. (2010) is expected to reach SR 1,360,000,000,000 with an increase by 16.6% over the previous fiscal year 1430/1431H. (2009) as a result of a 25% growth of the petroleum sector. The GDP of the public and private non-oil sectors is expected to increase by 9.2%, and the government sector is expected to grow by 15.7% and the private sector by 5.3 % at current prices.

In terms of fixed prices, the GDP is expected to grow by 3.8%, the oil sector by 2.1%, and the non-oil sector by 4.4%. The government sector is expected to grow by 5.9% and the private sector by 3.7%, where the contribution of the private sector to the GDP reached 47.8%. All economic activities constituting the GDP of the non-oil sector have achieved a positive growth, where the real growth in non-oil manufacturing is estimated to be 5%, the communications, transport and storage (5.6%), the electricity, gas and water (6%), construction (3.7%), the wholesale and retail trade, restaurants and hotels (4.4%), and the finance, insurance and real estate (1.4%).

The Minister of Finance also said that the index of cost of living, which is the most important indicator of the general level of prices, showed an increase during the year 1431/1432H (2010) of 3.7% over the year 1430/1431H (2009) in accordance with estimates released by the Department of Statistics and Information.

The non-oil sector GDP deflator, which is the most important economic indicator to measure inflation at the level of the economy as a whole, is expected to increase by 1.5% in the year 1431/1432H (2010) over the previous year.

The Minister of Finance said that the volume of public debt will decline by the end of the current fiscal year 1431/1432H (2010) to approximately SR 167,000,000,000, representing 10.2% of the projected GDP for 2010 compared to SR 225,000,000,000 at the end of the previous fiscal year 1430/1431H (2009), representing 16% of the GDP for 2009.

He pointed out that in accordance with the directives of the Custodian of the Two Holy Mosques, the budget for the next fiscal year 1432/1433H will continue to focus on development projects that enhance the sustainability of growth and long-term development, and increase employment opportunities for citizens. The appropriation of funds was distributed in a way that focuses on the sectors of education; health; security, social and municipal services; water; sanitation; roads; electronic transactions; and scientific research support.

The budget includes new programs and projects as well as additional phases of some projects previously approved with a total value of Saudi Riyals 256,000,000,000. According to regular procedure, coordination has been made between the Ministry of Finance and the Ministry of Economy and Planning as regards the programs and projects included in the Ninth Development Plan which began in the current fiscal year 1431/1432H.

Three royal decrees on the national budget for the fiscal year 1432AH - 1433AH. as well as the Cabinet's decision approving the budget were issued in Riyadh last week. Following are the texts of the royal decrees:

'On behalf of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud, We the Deputy Custodian of the Two Holy Mosques Prince Sultan bin Abdulaziz Al Saud decree the following:

The first royal decree estimates the state revenues for the fiscal year 1432AH - 1433 AH at SR 540,000,000,000 and expenditures are allocated at SR 580,000,000,000.

The Minister of Finance is authorized to withdraw from this account to replenish the expenditures for the projects currently financed from the surpluses of the fiscal years extending from 1424AH to 1428 AH.

Had the budget yielded a surplus, the authorities should transfer it to the state reserves. No withdrawals are allowed from it unless authorized by a royal decree.

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

The second royal decree deals with the revenues and expenditures of governorates, municipalities and rural compounds for the fiscal year 1432AH/1433AH. as follows:

First: The expenses of municipalities and rural compounds for the fiscal year 1432AH-1433AH are estimated at (SR 23,127,660,000).

Second: The revenues of governorates, municipalities for the fiscal year 1432AH-1433AH are estimated at (SR 3,257,320,000).

Third: The difference between direct revenues and expenses amounted to (SR 19,870,340,000) 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 and municipalities 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 article surplus of the governorates and municipalities to other governorates and municipalities shall only be authorized by the consent of President of Council of the Minister 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 and Minister of Municipal, Rural Affairs and Minister of Finance each according to his authority, implement this Decree accordingly.

The Third royal decree covered revenues and expenditures of general organizations whose budgets are annexed to the state's general budget for fiscal year 1432AH/1433AH.

First: Revenues and expenditures of general organizations whose budgets are annexed to the state's general budget for fiscal year 1432AH/1433AH, are estimated and approved as follows:

1-Revenues of Saudi Ports are estimated at SR 2,792,000,000 and approved expenditures at SR 1,375,625,000. 2-Revenues and expenditures of General Organization of Saudi Arabian Airlines are estimated at SR 20,924,000,000. 3-Revenues of General Organization of Grain Silos and Flour Mills are estimated at SR 1,480,000,000 and approved expenditures at SR 1,713,100,000. 4- Revenues and expenditures of Saline Water Conversion Corporation are estimated at SR 14,919,300,000. 5-Revenues and expenditures of General Organization of Railways are estimated at SR 1,345,471,000 6- Revenues and expenditures of Royal Commission of Jubail and Yanbu are estimated at SR 7,486,094,0000. 7- Revenues and expenditures of Saudi Standards and Quality Organization are estimated at SR 154,286, 000. 8- Revenues and expenditures of Saudi Arabian General Investment Authority are estimated at SR 157,100,000. 9- Revenues and expenditures of King Saud University are estimated at SR 7,843,363,000. 10- Revenues and expenditures of King Abdulaziz University are estimated at SR 3,916,068,000. 11- Revenues and expenditures of King Fahd University of Petroleum and Minerals are estimated at SR 1,124,262,000. 12- Revenues and expenditures of Imam Mohammed bin Saud Islamic University are estimated at SR 2,723,321,000. 13-Revenues and expenditures of Islamic University are estimated at SR 655,772,000. 14-Revenues and expenditures of King Faisal University are estimated at SR 1,600,931,000. 15-Revenues and expenditures of Umm Al-Qura University are estimated at SR 1,919,688,000. 16-Revenues and expenditures of King Khalid University are estimated at SR 2,697,197,000. 17-Revenues and expenditures of Taibah University are estimated at SR 1,420,006,000. 18-Revenues and expenditures of Al-Qassim University are estimated at SR 1,707,475,000. 19-Revenues and expenditures of Al-Taif University are estimated at SR1, 266,213,000. 20- Revenues and expenditures of Jazan University are estimated at SR 1,082,933,000. 21- Revenues and expenditures of Jouf University are estimated at SR 899,988,000. 22- Revenues and expenditures of Hail University are estimated at SR 882,863,000. 23- Revenues and expenditures of Tabuk University are estimated at SR 793,116,000. 24- Revenues and expenditures of Baha University are estimated at SR 626,835,000. 25- Revenues and expenditures of Najran University are estimated at SR 630,057,000. 26- Revenues and expenditures of Northern Border University are estimated at SR 548,911,000. 27- Revenues and expenditures of Princess Norah bint Abdulrahman University are estimated at SR 834,701,000. 28- Revenues and expenditures of Dammam University are estimated at SR 2,008,609,000. 29- Revenues and expenditures of Kharj University are estimated at SR 624,662,000 30- Revenues and expenditures of Al Majma'ah University are estimated at SR 358,994,000 31- Revenues and expenditures of Shaqra University are estimated at SR 575,638,000. 32- Revenues and expenditures of the Technical and Vocational Training Corporation are estimated at SR 4,605,362,000. 33- The revenues and expenditures of King Abdulaziz City for Sciences and Technology are estimated at SR 1,693,647,000. 34- The revenues and expenditures of Institute of Public Administration are estimated at SR 472,095,000. 35- The revenues and expenditures of King Faisal Specialist Hospital and Research Center at SR 4,462,003,000. 36- The revenues and expenditures of Saudi Red Crescent Authority are estimated at SR 1,625,258,000. 37-The revenues and expenditures of Military Industries Corporation are estimated at SR 1,535,428,000. 38- The revenues and expenditures of Saudi Geological Survey are estimated at SR 208,300,000. 39- The revenues and expenditures of Saudi Commission for Tourism and Antiquities are estimated at SR 468,400,000. 40- The revenues and expenditures of Communications and Information Technology Commission are estimated at SR 959,000,000. 41- The revenues and expenditures of Saudi Food and Drug Authority are estimated at SR 624,700,000. 42- The revenues and expenditures of Saudi Post are estimated at SR 2,135,144,000. 43- The revenues and expenditures of General Authority of Civil Aviation are estimated at SR 7,899,661,000. 44- Revenues and expenditures of Human Rights Commission are estimated at SR 73,633,000. 45- Revenues and expenditures of General Commission for Housing are estimated at SR 169,342,000 46- Revenues and expenditures of General Survey Authority are estimated at SR 326,481,000. 47- Revenues and expenditures of King Abdullah City For Atomic and Renewable Energy are estimated at SR 500,000,000.

Second: The surplus of revenues and unpaid amounts drawn from budget allocations 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 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 (3-7-8-9-10-11-12-13-14-15) of the Royal Decree No. (M/5) dated 14/1/1432 AH, approving the State General Budget for the fiscal year 1432AH/1433AH.

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

Sixth: The Deputy Premier, Ministers and Heads of Authorities with independent budgets shall implement this decree in accordance with their specified authorizations.

The decision of the Cabinet number M/5 dated on 14/1/1432 AH, approved the general budget of the state for the fiscal year 1432 AH/1433AH and stated that all government agencies should spend no more than budget's appropriations and should not commit to any expenditure that has no allocation.

In this regard, the Cabinet's decision number 157 dated on 12/9/1420 AH, should be applied. In the case of an emergency that cannot be deferred, the matter should be reported to the King according to article 73 of the Basic Law and article 27 of the regulation of the Cabinet.'