The Ministry of Finance has issued a statement on the occasion of the issuance of the State's General Budget for the fiscal year 1439/1440 AH. The following is the text: Statement of the State Budget for the fiscal year 2018 Introduction The Ministry of Finance ("the Ministry") has improved the process of preparation of the state budget. This FY 2018 state budget statement reflects the Ministry's medium-term budget development policy which takes into account the economic and fiscal developments. It also highlights the budget performance and key fiscal and economic developments in 2017, key medium-term domestic and global economic developments for 2018, key indicators for FY 2018 and medium-term projections until 2023, including a review of the Fiscal Balance Program. The statement also highlights key government initiatives and reforms aimed at achieving financial sustainability and economic growth. It also reviews key economic risks posed to the public finance in the medium term and the policy to reduce and mitigate such risks. Saudi Arabia's endeavors for greater disclosure and transparency are also highlighted. It is worth mentioning that the accounts have been classified in accordance with the Government Finance Statistics Manual (GFSM 2014), which is a global and standard classification issued by the International Monetary Fund (IMF). I: Overview of the Budget Fiscal and Economic Framework Saudi Arabia is currently undergoing a historic and important transition at the economic, social and cultural levels under the direct guidance and supervision of the Custodian of the Two Holy Mosques and His Highness the Crown Prince. Saudi Vision 2030 was launched in April 2016 and its programs were launched in 2016 and 2017. The Vision and its programs aim to diversify the economy beyond oil, achieve financial and economic stability, stimulate non-oil sector growth, increase the contribution of the private sector as a driver of growth, increase employment opportunities for citizens of both genders, improve the standard of living of citizens and build a vibrant society. To realize the objectives of Vision 2030, the Fiscal Balance Program was launched to achieve fiscal sustainability. The Ministry also launched several programs and initiatives, such as the implementation of a medium-term public finance framework with a budget cap and certain expenditure caps for government entities, the optimal allocation and efficient management of resources, the development of the estimation and collection of revenues through measurable targets, improvements in the quality, accuracy, transparency and frequency of financial accounts, the optimal utilization of state assets and the introduction of new financing methods. To achieve these objectives, many functions have been established to run the various programs and support the transition phase and the Vision 2030, including: Macro Fiscal Policy Unit, Debt Management Office, Expenditure Rationalization Office, Fiscal Balance Program Office, Financial Sector Development Office, and Non-oil Revenue Development Unit. These newly established functions-in addition to the treasury ecosystem that includes the Deputy Ministry for Budget and Organizational Affairs, Deputy Ministry for Financial and Accounts Affairs and Deputy Ministry for Revenues Affairs-work in tandem with different departments in the Ministry and other government agencies to implement the Ministry's strategy. The Ministry has also launched several initiatives, including: (1) the development of public finance management, (2) the introduction of treasury single account for effective cash control and liquidity management, (3) the development of the budget preparation, (4) the revision of the Government Tenders and Procurement Law, (5) the switch from the cash basis to the accrual basis in government accounting, and (6) the improvement of financial supervision. These initiatives will result in a more efficient budget preparation and better financial control and performance measurement. Economic Framework --More 16:06 LOCAL TIME 13:06 GMT www.spa.gov.sa/1700592
