The Medium-Term Fiscal Planning Development Project is an initiative by the Ministry of Finance in the Kingdom of Saudi Arabia aimed at designing a fiscal planning framework that enhances the efficiency of the kingdom's general budget over the medium term.
Operational mechanism of the Medium-Term Fiscal Planning Development Project
Through the project, the Ministry of Finance aims to build a fiscal planning framework by aligning the medium-term financial framework with government spending priorities and gradually transitioning to the comprehensive implementation of a multi-year budget starting in 2023.
In collaboration with government entities involved in fiscal planning in the Kingdom, the Medium-Term Fiscal Planning Development Project aims to review various initiatives, programs, and projects existing within many government entities related to medium-term fiscal planning, both within and outside the financial sector. The project seeks to leverage these insights to develop a medium-term fiscal planning framework that supports the Kingdom's financial sustainability objectives.
Objectives of the Medium-Term Fiscal Planning Development Project
Through the project, the Ministry of Finance aims to build a medium-term fiscal planning framework in the Kingdom and gradually transition to the comprehensive implementation of a multi-year budget by 2023, to achieve the following objectives:
- Aligning spending priorities with the budget over the medium term.
- Designing a framework for capital expenditure.
- Developing policies that provide alternative financing solutions for government entities' projects.
- Designing a methodology for medium-term fiscal planning.
- Designing a framework for estimating government expenditures over the medium term.
- Designing a framework for estimating government revenues over the medium term.
- Developing policies and governance related to medium-term fiscal planning.
- Designing a change management program for the transition to medium-term fiscal planning.
- Designing the actual implementation program for the transition to medium-term fiscal planning.
- Preparing a guide for multi-year budget performance indicators.
- Aligning the technical financial systems within the Ministry of Finance to transition to a multi-year budget.
- Designing a capacity-building and skills development program necessary for medium-term fiscal planning.
Main business tracks for medium-term fiscal planning
The Ministry of Finance is implementing the Medium-Term Fiscal Planning Development Project by working on three main business tracks: strategy, governance and operations, and capabilities. This is being done in collaboration with government entities involved in medium-term fiscal planning in the Kingdom.
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