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Fiscal Balance Program

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PROGRAM DESCRIPTION

The Fiscal Balance Vision Realization Program includes the supervision and foresight of fiscal performance with the aim to maximize oil and non-oil government revenues in conjunction with improving government spending efficiency and managing risks associated with these processes. To achieve fiscal sustainability, the program also targets maintaining a stable government reserve account while retaining the Kingdom's ability to borrow funds from local and international markets as per the medium-term debt strategy.

OBJECTIVES

2020 COMMITMENTS

The commitments of 2020 to the fiscal balance program are in line with the need to reduce the deficit to a sustainable level, while maintaining the appropriate growth of the non-oil economy. In order to balance these two targets, a global benchmarking exercise was conducted to consider the experiences of other countries that underwent major economic reforms. this exercise aided in the design of the fiscal balance program 2016, which targets reforms affecting 15.2% of the GDP over the course of four years. The government is  committed to transparent and sustainable policy development. The fiscal balance prgram document published in 2016 sets out the program's comprehensive fiscal reforms over five years. Hence, beyond what is described in the document:
  • There will be no additional financial impositions by the government on its citizens or private sector
  • There will be no further removal of subsidies
  •  There will be no income tax imposed on citizens
  •  There will be no corporate income tax
As part of our program of developing more robust policy-making process, the program committed the following:
  •  There will be an inclusive review process of draft key policies
  •  There will be a grace period between policy announcements and policy implementation
  •  There will be no retroactive decision making
the program acknowledges that in the past, many businesses have been very reliant on the cash-flow they receive from the government. As part of the program support for the broader economy, the program committed that going forward:
  • There will be no delay in the government paying contractors for services rendered
  • The government will pay within 60 days of due dates

REPORTS