Latest news with #FinancialSustainabilityProgram
Arab News
15-02-2025
- Business
- Arab News
Unraveling the success of the Kingdom's Financial Sustainability Program
The Council of Economic and Development Affairs announced the completion of the executive plan for the Financial Sustainability Program on schedule. The program, part of the Kingdom's Vision 2030, was launched in 2016 under the name Fiscal Balance Program as part of several initiatives aimed at ensuring long-term financial and economic sustainability. It has also paved the way for more sustainable and promising financial prospects, by establishing a balanced and robust financial system capable of adapting to unexpected changes, enabling the government to operate without interruptions or gaps. The program has enhanced the financial sustainability of Saudi public finances through initiatives translated into mechanisms and procedures within the Ministry of Finance as well as various government agencies. As a result, the government's financial position today is stronger than ever and more capable of facing challenges. The program has also achieved several milestones, such as raising the efficiency of government spending, enhancing public revenues and improving financial planning capabilities, all of which have contributed to strengthening the Kingdom's financial position and the durability of the Saudi economy. It is worth noting that the program has played a fundamental role in supporting the implementation of several projects under Vision 2030. The program has also achieved notable accomplishments, particularly contributing to a significant increase in non-oil revenues from $49.6 billion in 2016 to $122.1 billion in 2023, representing a growth of about 146 percent. The program enhanced public financial management by introducing a shift in financial planning through initiatives focused on data analysis, technical solutions and automating government financial systems. Non-oil revenues covering total spending also increased from 22 percent in 2016 to 35 percent in 2023, through the launch of policies and initiatives aimed at diversifying government revenues. The program has helped establish several government entities, including the Expenditure and Projects Efficiency Authority, which has collaborated with various government agencies to enhance spending efficiency. Additionally, the program helped establish the National Debt Management Center, which played a pivotal role in accessing debt markets and managing the government's debt portfolio, as well as the Non-Oil Revenues Development Center, which diversified and sustained revenues, thereby reducing reliance on oil. The Expenditure and Projects Efficiency Authority has achieved an annual positive financial impact of about $30.4 billion, with a total impact of $183.3 billion from 2018 to 2023. It is worth noting that the impact of these entities will continue even after the completion of the Financial Sustainability Program. The program also enhanced public financial management by introducing a shift in financial planning through initiatives focused on data analysis, technical solutions and automating government financial systems, such as the Etimad platform. Additionally, it helped develop the transition from cash-based accounting to accrual-based accounting and the unified treasury account, while enhancing the budget preparation process and increasing transparency. Furthermore, the program contributed to improving the efficiency of government support by directing it to eligible citizens through the Citizen Account Program, which will continue providing support after the completion of the Financial Sustainability Program. The program's delivery plan is considered one of the key achievements of Vision 2030, ensuring continued impact from other programs and initiatives while paving the way for informed decision-making regarding the Kingdom's development journey. • Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
Arab News
11-02-2025
- Business
- Arab News
Saudi Cabinet reviews regional developments, approves key agreements
RIYADH: Crown Prince Mohammed bin Salman chaired the weekly Cabinet session in Riyadh on Tuesday, where key regional and international issues were discussed and agreements aimed at enhancing the Kingdom's global partnerships were approved, the Saudi Press Agency reported. The crown prince briefed the Cabinet on his recent phone calls with Jordan's King Abdullah II and UAE President Sheikh Mohammed bin Zayed Al-Nahyan. The Cabinet strongly rejected Israeli statements advocating the displacement of Palestinians, reaffirming Saudi Arabia's commitment to the Palestinian cause. The ministers said that lasting peace could be achieved only through the two-state solution and peaceful coexistence. The session highlighted the Kingdom's growing influence in multilateral organizations, particularly its recent election to the Executive Committee of the International Association of Anti-Corruption Authorities. The achievement reflects global recognition of Saudi Arabia's efforts to combat corruption and promote transparency. On the domestic front, the Cabinet praised the continuing economic diversification efforts, particularly the launch of the King Salman Automobile Manufacturing Complex, which is expected to boost the economic contribution of the non-oil sector and support the National Industry and Logistics Development Program. The ministers commended the completion of the Financial Sustainability Program's executive plan, which aims to enhance spending efficiency, develop revenue streams and strengthen Saudi Arabia's economic resilience under Vision 2030. The Kingdom's top ranking on the security index for the Group of 20 industrialized and emerging-market nations was also recognized as a testament to its leadership in ensuring stability and prosperity. During the session, the Cabinet approved several agreements to strengthen Saudi Arabia's international partnerships. In the field of security cooperation, ministers signed a deal with Jordan to combat narcotics trafficking, while on the diplomatic front, a mutual visa exemption deal was finalized with the Solomon Islands for holders of diplomatic, special and official passports. Economic and trade relations were also discussed, with the Cabinet authorizing negotiations for a political consultations memorandum with Armenia and approving a commercial cooperation agreement with the Maldives. A new partnership was also established with Oman in the field of economy and planning, while a separate memorandum of understanding was signed with Qatar to enhance financial cooperation. The government also approved an agreement with Serbia to avoid double taxation and prevent tax evasion. In the cultural and scientific fields, a memorandum of understanding was signed with Morocco's Hassan II Mosque Foundation to promote traditional arts, while another was agreed with the UK's Meteorological Office for cooperation in meteorology. Transport and infrastructure initiatives were also on the agenda, with the approval of an agreement with Egypt to enhance maritime connectivity and passenger transport in the Gulf of Aqaba. In the financial sector, the Cabinet endorsed a new partnership to enhance cooperation between the Saudi Central Bank and the Central Bank of Turkiye. The Cabinet also approved amendments to the Public Prosecution Law and the Board of Grievances Law, adding experienced professionals to their respective councils. Additionally, key promotions were confirmed, including the appointment of Abdul-Moneim bin Abdul-Rahman bin Saleh Al-Mahmoud as an ambassador at the Ministry of Foreign Affairs.
