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3 decrees for fiscal discipline
Saudi Gazette report
Published in The Saudi Gazette on 23 - 12 - 2008

Three royal decrees issued Monday for fiscal discipline in government impose curbs on new appointments, promotions, awarding contracts and making financial commitments, so that spending is within the scope of the 2009 budget.
Accordingly, only the Minister of Finance is authorized to provide any additional funding for budgeted projects from the 2003-2008 revenue surplus in the State exchequer.
Surplus in the year ahead would go into a reserve fund to be drawn upon through a royal decree only in case of dire need in the higher interests of the state.
The finance minister may borrow and transfer from this reserve fund to the public debt account if necessitated by public interest or for covering the budget deficit.
Transfers of budgetary allocations are be decided by the finance minister based on a joint report between him and the minister concerned or the head of any government body having an independent budget. Moreover, such allocations should be only for a purpose stated in the budget.
No decision is be made or contract signed that may result in any additional financial obligation in 2009, except for the following:
1 Recurring contracts such as rent and work contracts, services, food and medical supplies contracts, and services and consultation contracts, which are generally awarded annaually.
2 Import contracts stated in Chapter 2 of the budget, which necessitate contracts of more than one year; these should be within the budget allocations.
3 Contracts for project operation, maintenance and implementation provided these are within the cost approved for each program or project.
4 If in 2009-10 there are funding commitments made in previous years that do not exceed approved allocations, these should be referred to the prime minister (king) for his approval. Any excess commitment must be referred to the king through the finance minister , or whoever acts on his behalf, for sanction from the fiscal year's allocations.
Every government agency's administrative structure should be within budget and amendments can be made only by the Higher Committee for Administrative Reform or by the Ministerial Committee for Administrative Organization.
There will be no appointments of civil servants and laborers, or promotions, and no creation of new posts and ranks beyond what's approved in the 2009 budget; exceptions are only for appointments of ministers and for temporary jobs.
No salary raise must be made that is not in the budget.


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