THE Ministry of Finance issued today a press release on the state's general budget for fiscal years 1426/1427: The following is the outcome of the fiscal year 1426/1427 (2006), the highlights of the new budget for the fiscal year 1427/1428 (2007) and the recent economic developments. The Outcome for Fiscal Year 1426/1427 (2006) The Ministry of Finance projects revenues to reach SR 655 billion in 2006, while expenditure amounts to SR 390 billion; there were increases in some expenditure items such as projects in the two holy mosques and other Mashair, subsidies, increase in appropriation to cover higher admission in universities and scholarship program. With regard to the budget surplus, according to Royal Order, SR 40 billion of the surplus will be allocated to additional development projects, increase the capital of Public Investment Fund by SR 20 billion, transfer SR 100 billion to the government's reserves account, the remaining surplus will be allocated to retire part of the public debt. Preliminary estimates indicate that public debt is expected to drop to around SR 366 billion at the end of fiscal year 2006 which represents 28% of expected GDP for 2006 compared with 40% last year. The National Budget for 1427/1428 (2007) This year's budget is a continuation of the government focus on optimizing the available resources and give priority to social basic infrastructure and services especially in education, health, social affairs, municipal services, water and sewage, and roads. Moreover, the budget put special emphasis on capital expenditures that will create more job opportunities and enhance economic activities, and boost economic growth. The following are the main highlights of the 2007 budget: 1- Total revenues for the fiscal year 2007 are projected at SR 400 billion. 2- Government expenditure for the fiscal year 2007 is budgeted at SR 380 billion. 3- Total new capital budget (new projects and increase in existing projects) amounted to SR 140 billion. --More
