Royal Decrees Governing the State Budget for 1425/26 [FY2005]
Custodian of the Two Holy Mosques King Fahd bin Abdulaziz issued in Riyadh on December 8, 2004, royal decrees covering the State Budget for the fiscal year 1425/1426 [FY2005], plus municipal and rural budgets, and annexed budgets for general organizations.
[I] State Budget
In reference to the royal decree regarding utilization of the exceptional increase of income for the fiscal year of 1424/1425 [FY2004], namely, to allocate SR41 billion [U.S.$10.95 billion] of the surplus of the income of that year to implement an additional specific program aimed at developing and improving the services that are included in the royal decree on the Eighth Five-Year Development Plan, for the five years starting from the fiscal year of 1425/1426 [FY2005], as well as increasing the capital of the Real Estate Development Fund and the Saudi Credit Bank; and
In reference to State revenues and expenditures for the fiscal year of 1425/1426 [FY2005], we have decreed:
First: The total revenues for the State for the fiscal year of 1425/1426 [FY2005] are projected at SR280 billion [$74.77 billion]. The State expenditures for the fiscal year of 1425/1426 [FY2005] are budgeted at SR280 billion [$74.77 billion].
Second: Revenues shall be collected in accordance with the relevant financial systems and deposited in the current account of the Ministry of Finance at the Saudi Arabian Monetary Agency.
Third: The Minister of Finance is mandated to add the necessary amounts to expenditures for the fiscal year of 1425/1426 [FY2005] from the surplus of revenues of the fiscal year of 1424/1425 [FY2004] to cover financed projects from this surplus as dictated by the relevant Royal Decree dated 10/9/1425.
Fourth: All expenditures shall be spent in accordance with the designations of the budget and directives relating to it.
Fifth: The surplus shall be allocated to settling the public debt and in the event of a deficit in the budget, the Minister of Finance is authorized to borrow to cover it.
Sixth: Transfers among the budget's approved chapters, branches and sections are to take place upon a joint report by the Minister of Finance and either the authorized minister or head of an independent-budget department. Transfers among the articles of each of Chapter I and Chapter II are decided by the authorized minister or head of an independent-budget department, provided that each transfer does not exceed half of the original appropriation of the recipient chapter. Salaries chapters are exempt from this provision, except in accordance to paragraph (a) of that chapter.
Seventh: It is not permitted to use any appropriation for an unauthorized purpose, nor to issue an order of commitment or payment exceeding the appropriation or a commitment to cover expenditure not approved in the budget.
Eighth: It is not permitted to issue a decision or conclude a contract that lays a burden on a future fiscal year except for the following:
(a) Contracts in continuous progress or periodically-implemented such as leasing, labor and service contracts, catering, medicines and medical supply contracts, and consultative service contracts having repetitive annual appropriations.
(b) Supply contracts approved in Chapter II requiring contracting for more than one year, provided that the annual value of a contract runs within the budgeted appropriation. The first financial year appropriation is set as a standard for the value of the contract, provided that the amount of the contract is not linked to other purposes.
(c) Contracts of operation, maintenance and projects implementation, provided that the commitment is limited to the approved authorization for each program or project.
Ninth: The government's control bodies shall strictly follow up the implementation of Cabinet Resolution 52, dated 7/3/1420, and Article 3/H of the Government Procurement Supply and Projects Implementation System. In the event that there is a strong justification to divide the purchases and businesses, prior coordination with the Ministry of Finance is required.
Tenth: During the fiscal year of 1425/1426 [FY2005], if the set appropriation be exceeded due to past years' pledges owing to unwarranted action, the issue shall be considered by the President of the Cabinet. Otherwise, the Minister of Finance is authorized to permit disbursement of these amounts from the FY2005 appropriations.
Eleventh: Administrative formations for all bodies are approved according to what is issued by the General Budget; any amendment shall be made by a decision of the Higher Committee of Administrative Reforms or by the Ministerial Committee for Administrative Organization.
Twelfth: Appointment or promotion of employees shall only be made to jobs approved in the budget and in accordance with the provisions of the relevant regulations and laws.
(a) During the fiscal year, no creation of jobs, grades or ranks is permitted other than those approved in the budget.
(b) Excluded from paragraph (a) is the appointment of ministers and jobs created according to the provisions of the regulations on temporary jobs.
(c) During the fiscal year, grades and ranks approved in the budget are not subject to promotion.
(d) Amendment of titles of jobs is permitted through a decision by the Minister of Civil Service and in accordance with the regulations governing job categorizations; also permitted is the demotion of grades based on a recommendation by representatives of the Ministry of Finance, the Ministry of Civil Service and the concerned bodies.
(e) Approved jobs shall be exchanged among chapters and branches of the budget in accordance with a decision by the Minister of Finance.
Fourteenth: The Minister of Finance shall issue the necessary instructions for the implementation of this Budget in accordance with the rules stated in these decrees.
Fifteenth: This decree shall be implemented by the Vice President of the Cabinet and the ministers concerned.
(II) Revenues and expenditures of the municipalities and rural communities:
First: The expenditures of municipalities for the fiscal year of 1425/1426 [FY2005] are estimated at SR10,655,849,000 [U.S.$2,845,353,538.05].
Second: The revenues of municipalities and rural communities for the fiscal year of 1425/1426 [FY2005] are estimated at SR1,679,529,000 [$448,472,363.15].
Third: The difference between direct revenues and expenditures in the general budget is estimated at SR8,976,320,000 [$2,396,881,174.90].
Fourth: Expenditures shall be spent in accordance with the financial regulations.
Fifth: Municipalities and rural communities shall collect their revenues in accordance with regulations.
Sixth: Stated rules approved by the general budget for the fiscal year 1425/1426 [FY2005] shall be applied to the budgets of municipalities and rural communities.
Seventh: Transfer of surplus amounts of budgets of municipalities and rural communities shall be approved by the Prime Minister.
(III) Revenues and expenditures of the general organizations whose budgets are annexed to the general budget for the fiscal year 1425/1426 [FY2005].
1- Ports Authority, revenue SR1,780 million [$475.30 million]; expenditure SR465.68 million [$124.35 million]
2- Saudi Arabian Airlines, revenues and expenditures SR13,595 million [$3,630.17 million]
3- General Organization of Grain Silos and Flour Mills, revenues SR1,254 million [$334.85 million], expenditures SR505.46 million [$134.97 million]
4- Saline Water Conversion Corporation, revenues and expenditures SR2,256.90 million [$112.38 million]
5- Saudi Railways Organization, revenues SR165 million [$44.06 million], expenditures SR420.86 million [$112.38 million]
6- Royal Commission for Jubail and Yanbu, revenues SR301.21 million [$80.43 million], expenditures SR2,729.34 million [$728.80 million]
7- Saudi Arabian Standards Organization, revenues and expenditures SR105.73 million [$28.23 million]
8- Saudi Arabian General Investment Authority, revenues and expenditures SR83.71 million [$22.35 million]
9- King Saud University, revenues and expenditures SR2,608.26 million [$696.46 million]
10- King Abdulaziz University, revenues and expenditures SR1,620.88 million [$432.81 million]
11- King Fahd University for Petroleum and Minerals, revenues and expenditures SR681.52 million [$181.98 million]
12- Imam Muhammad bin Saud Islamic University, revenues and expenditures SR1,223.23 million [$326.63 million]
13- Islamic University of Madinah, revenues and expenditures SR317.58 million [$84.80 million]
14- King Faisal University, revenues and expenditures SR994.24 million [$265.48 million]
15- Umm Al-Qura University, revenues and expenditures SR754.37 million [$201.43 million]
16- King Khalid University, revenues and expenditures SR599.87 million [$160.18 million]
17- Taybah University, revenues and expenditures SR257.63 million [$68.79 million]
18- Qasim University, revenues and expenditures SR378.23 million [$100.99 million]
19- Taif University, revenues and expenditures SR178.11 million [$47.56 million]
20- General Organization for Technical Education and Vocational Training, revenues and expenditures SR2,488.53 million [$664.49 million]
21- King Abdulaziz City for Science and Technology, revenues and expenditures SR520.64 million [$139.02 million]
22- Institute of Public Administration, revenues and expenditures SR200.14 million [$53.44 million]
23- Saudi Red Crescent Society, revenues and expenditures SR418.40 million [$111.72 million]
24- General Organization for Military Industries, revenues and expenditures SR793.48 million [$211.88 million]
25- Saudi Geological Survey Commission, revenues and expenditures SR117.09 million [$31.27 million]
26- Supreme Commission for Tourism, revenues and expenditures SR157.48 million [$42.05 million]
27- Communications and Information Technology Commission, revenues and expenditures SR185 million [$49.40 million]
28- Food and Drugs Authority, revenues and expenditures SR68.30 million [$18.24 million]
29- Saudi Postal Organization, revenues and expenditures SR968.28 million [$258.55 million]