Three Royal Decrees were issued today on the State budget for FY 2007 (1427-1428 H).

The first decree:

First: The State's revenues for FY 1427-1428 H are estimated at SR 400 billion [$106.7 billion]. Expenditures for FY 1427-1428 H amount to SR 380 billion [$101.3 billion].

Second: Revenues are obtained in line with the financial systems and are to be deposited under the current account of the Ministry of Finance at the Saudi Arabian Monetary Agency (SAMA).

Third: Authorization of the Minister of Finance to add the required sums for expenditure on the projects financed from the surplus of the revenues for FY 1424-1425 H, 1425-1426 H, and 1426-1427 H, in line with the Royal Order 46325 dated on 10/9/1425, the Royal Order number 227/a, dated on 16/7/1426, and the Royal Order number 149-a, dated on 11/11/1427.

Fourth: Expenditures are to be in line with the budget and the instructions pertaining to it.

Fifth: Surplus of the budget will be allocated for repayment of general debt, and in case of deficit in the budget, the Minister of Finance will be authorized to borrow for its coverage.

Sixth:

A. Transference of the allocations of the budget’s chapters and branches to take place in line with a decision from the Minister of Finance based on a joint report between him and the concerned minister or the head of the authority that has an independent budget.

B. Transference of allocations of the budget’s chapters is to take place by a decision from the Minister of Finance.
C. Transference among the articles of the first chapter, the second chapter and the annual programs of operation and maintenance in the third chapter is to take place by a decision from the concerned minister or the head of the authority of the independent budget, provided that the transferred sum should not exceed half of the original allocation of the program to which it will be transferred with the exception of the articles and programs of the salaries. Transference of more than half of the allocation should be through a decision from the minister of finance.
D. Transference should be conducted within allocations for each of non-annual operation and maintenance programs in the third chapter and projects of the fourth chapter by decision of the concerned minister or chief of budget – independent department.
E.  Transference of costs of all operation and maintenance programs in the third chapter and projects in the fourth chapter should by conducted by decision from finance minister.

Seventh: It is not allowed to use the allocation, except in its real allocations or issue an order to adhere or to spend in a way that surpass the allocation or to oblige to any expenditure not allocated in the budget.

Eighth: It is not allowed to issue any decision or sign contract that causes financial obligations to upcoming fiscal year with exceptions of the following:

A. Contracts of continuing execution or of periodic implementation such as lease contract, work, services, supply of living needs, medicine, medical equipments and contract of consultative services for which annual allocations are repeatedly allocated.
B. Supply contracts which their costs are allocated in the second chapter that required contract for more than a year providing that the annual value of the contract is with limit of the budget and allocation of the first fiscal year taken as a guide to determine the value of the contract and should not be linked with the amount allocated for other purposes.
C. Contracts of operation and maintenance on condition that the obligation will be within the limit of allocated cost for each program or project.

Ninth: The monitoring departments should oversee the implementation of the current rules, decisions and related directives.

Tenth: If it appears during FY 1427-1428 H, an amount of money was committed during previous years that exceeds the allocated budget then the issue should be referred to the Premier if the excess was the result of unjustified action, otherwise the Minister of Finance or his deputy could issue permission to collect that money from the allocations of FY 1427-1428 H.

Eleventh: The administrative formations for each authority should be in accordance with the general budget and it is not allowed to amend it except by decision from the higher committee of the administrative reform or by a decision based on conclusions of the ministerial commission for administrative regulation.

Twelfth: It is not allowed to appoint or promote employees and laborers except on the jobs allocated in the budget and with the terms identified in the adopted regulations and directives.

Thirteenth:
A. It is not allowed during fiscal year to create jobs or ranks except those allocated in the budget.
B. With the exclusion from item A of this article the appointment of ministers and jobs created according to terms included in the temporary jobs system.
C. It is not allowed during the fiscal year to promote ranks allocated in the budget.
D. A decision from the Minister of Civil Service can change the names of jobs in accordance with the rules and classification of jobs and to lower ranks according to recommendation from a two-member commission from the Ministries of Finance and Civil Service and other related authority.
E. A decision from the Minister of Finance can transfer jobs approved in the chapters of the budget and within the united administrative formation on the recommendation of a two-member commission from the Ministry of Finance and the Ministry of Civil Service as well as the related authority.

Fourteenth: The Minister of Finance issues the necessary regulations to implement this budget within rules stipulated in this decree.

Fifteenth: The deputy premier and ministers should undertake matters of their concerns to implement this decree.

The second Decree:

The Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz has issued a Royal Decree on the revenues and expenditures of the general organizations whose budgets are annexed to the general budget for FY 1427-1428H.

1. The revenues of the General Organization of Sea Ports are estimated at SR 2,150,000,000 [$573 million], and expenditures at SR 683,447,000 [$182 million].
2. The revenues and expenditures of the General Organization of Saudi Arabian Airlines are estimated at SR 15,632,000,000 [$4.17 billion].
3. The revenues of the General Organization of Grain Silos and Flour Mills are estimated at SR 1,312,000,000 [$349.9 million], and expenditures at SR 681,801,000 [$182 million].
4. The revenues and expenditures of the General Corporation of Saline Water Conversion are estimated at SR 3,926,465,000 [$1.05 billion].
5. The revenues and expenditures of the General Organization of Railways are estimated at SR 795,358,000 [$212 million].
6. The revenues and expenditures of Jubail and Yanbu Royal Commissions are estimated at SR 4,579,058,000 [$1.2 billion].
7. The revenues of and expenditures of Saudi Arabian Authority of Specifications and Standardization are estimated at SR 141,300,000 [$37.7 million].
8. The revenues and expenditures of the General Authority of Investment are estimated at SR 142,064,000 [$37.9 billion].
9. The revenues and expenditures of King Saud University are estimated at SR 3,188,946,000 [$850 million].
10. The revenues and expenditures of King Abdulaziz University are estimated at SR 1,894,732,000 [$505 million].
11. The revenues and expenditures of King Fahd University for Petroleum and Minerals are estimated at SR 784,882,000 [$209 million].
12. The revenues and expenditures of Imam Mohammed bin Saud Islamic University are estimated at SR 1,629,345,000 [$434.5 million].
13. The revenues and expenditures of the Islamic University are estimated at SR 407,052,000 [$108.6 million].
14. The revenues and expenditures of King Faisal University are estimated at SR 1,335,021,000 [$356 million].
15. The revenues and expenditures of Umm Al-Qura University are estimated at SR 998,543,000 [$266 million].
16. The revenues and expenditures of King Khalid University are estimated at SR 763,339,000 [$203.6 million].
17. The revenues and expenditures of Taybah University are estimated at SR 404,075,000 [$107.8 million].
18. The revenues and expenditures of Qasim University are estimated at SR 709,516,000 [$189 million].
19. The revenues and expenditures of Taif University are estimated at SR 366,547,000 [$97.8 million].
20. The revenues and expenditures of Jizan University are estimated at SR 219,516,000 [$58.5 million].
21. The revenues and expenditures of Jouf University are estimated at SR 189,832,000 [$50.6 million].
22. The revenues and expenditures of Hail University are estimated at SR 155,488,000 [$41.5 million].
23. The revenues and expenditures of Tabuk University are estimated at SR 103,731,000 [$27.6 million].
24. The revenues and expenditures of Baha University are estimated at SR 101,148,000 [$26.9 million].
25. The revenues and expenditures of Najran University are estimated at SR 113,080,000 [$30.2 million].
26. The revenues and expenditures of Girls’ University in Riyadh are estimated at SR 1,122,564,000 [$299 million].
27. The revenues and expenditures of the General Organization for Technical Education and Vocational Training are estimated at SR 3,412,450,000 [$910 million].
28. The revenues and expenditures of King Abdulaziz City for Sciences and Technology are estimated at SR 704,812,000 [$187.9 million].
29. The revenues and expenditures of General Administration Institute are estimated at SR 268,490,000 [$71.6 million].
30. The revenues and expenditures of King Faisal Specialist Hospital and Research Center at SR 2,690,500,000 [$717.6 million].
31. The revenues and expenditures of Saudi Red Crescent Society are estimated at SR 586,500,000 [$156 million].
32. The revenues and expenditures of Military Industries Corporation are estimated at SR 924,561,000 [$246.6 million].
33. The revenues and expenditures of Saudi Geological Survey are estimated at SR 148,339,000 [$39.6 million].
34. The revenues and expenditures of Supreme Commission for Tourism are estimated at SR 222,472,000 [$59 million].
35. The revenues and expenditures of Communications and Information Technology Commission are estimated at SR 280,000,000 [$74.7 million].
36. The revenues and expenditures of Food and Drug Authority are estimated at SR 129,000,000 [$34.4 million].
37. The revenues and expenditures of Saudi Post are estimated at SR 1,469,838,000 [$392 million].
38. The revenues and expenditures of General Authority of Civil Aviation are estimated at SR 3,062,633,000 [$816.8 million].

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 collected and dispersed 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 (3-6-7-8-9-10-11-12-13-14) of the Royal Decree approving the General Budget for the financial year 1427-1428.

Fifth: The Minister of Finance shall issue the necessary instructions for implementation.

Sixth : The Deputy Premier, Ministers and Heads of Authorities with independent budgets shall each implement this Decree accordingly.

The third Decree:

First: The expenditures of municipalities and rural complexes for the fiscal year 1427-1428 H are estimated at SR. 14,792,875,000 [$3.9 billion].

Second: The revenues of municipalities and rural complexes for the fiscal year 1427-1428 are estimated at SR 1,950,380,000 [$520 million].

Third: The difference between the direct revenues and expenditures, an amount of SR. 12,842,495,000 [$3.4 billion], shall be approved in the General Budget.

Fourth: The expenditures shall be dispersed in accordance with prevailing fiscal regulations and instructions.

Fifth: The municipalities and rural complexes shall collect their revenues in accordance with prevailing regulations and instructions. The concerned authorities shall follow-up the implementation.

Sixth: The budgets of municipalities and rural complexes shall be governed by rules included in articles (3-6-7-8-9-10-11-12-13-14) of the Royal Decree approving the General Budget for the fiscal year 1427-1428 H.

Seventh: The surplus of allocations for the budget items of municipalities and rural complexes shall be transferred to allocations of other budget items of municipalities and rural complexes by approval of the Premier based on a recommendation from the Minister of Municipal and Rural Affairs and the Minister of Finance.

Eighth: The Minister of Finance shall issue the necessary instructions to implement these budgets within the rules provided for in this decree.

Ninth: Deputy Premier, Minister of Municipal and Rural Affairs and Minister of Finance shall implement this decree.

The Cabinet's decision approved the General Budget for the fiscal year 1427-1428. It also provided that spending by each governmental authority shall not exceed the budget’s allocations. No commitment to any spending that has no allocation shall be made. In case an emergency condition emerges, it shall be submitted to the King in accordance with article 73 of the Basic Governing Law and article 27 of Cabinet's Law.

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