Saudi Arabia's public financial system has entered a new phase of systematic regulation after the Council of Ministers approved the updated 'State Revenue' system in its latest session chaired by Prince Mohammed bin Salman, Crown Prince and Prime Minister. This legislative achievement represents a fundamental shift in the economic philosophy of public finance management, as it goes beyond the traditional concept of fee collection to establish comprehensive foundations for strategic planning and comprehensive financial governance.

The significance of the new system is not limited to being a regulatory tool; it extends to being a safety valve that supports financial sustainability in the medium and long term, through precise regulation of every stage of public revenue flow—from its initial predictive estimation to its final settlement.

Council of Ministers session chaired by Crown Prince Prince Mohammed bin Salman on Tuesday (SPA)

Expanding the umbrella and governing sovereign flows

The updated system subjects all channels of public financial flows to precise regulatory oversight, expanding the revenue umbrella to include a comprehensive package of structural and sovereign sources. This umbrella includes natural resources and national assets that constitute the largest sovereign weight, along with fees, taxes, financial considerations, and wages that represent the main tributaries for financing the non-oil public budget.

The system also introduces proceeds from privatization and partnerships with the private sector as an independent and prominent item, fully aligned with the objectives of Vision 2030 aimed at expanding the private sector's contribution to GDP.

The regulation extends to cover state assets and properties by controlling sales and leasing operations, various financing and investment returns, in addition to other sources including fines and penalties, compensations, donations, gifts, grants, and bequests, endowment revenues, and up to zakat funds and any other revenue channels approved by the Council of Ministers.

I extend my thanks and appreciation to the Custodian of the Two Holy Mosques and His Highness the Crown Prince, Prime Minister – may Allah protect them – on the occasion of the Council of Ministers' approval to update the State Revenue System, which reflects the wise leadership's keenness to develop the financial system, enhance the efficiency of government revenue management, and consolidate the principles of governance and discipline... https://t.co/NwHQoJDmIg

— Mohammed Abdullah Abdulaziz Aljadaan | محمد الجدعان (@MAAljadaan) July 14, 2026

Revenue forecasting for 10 years

The predictive time dimension is one of the most prominent structural transformations brought by this system, moving the budget estimation process from short-term annual frameworks to broader strategic horizons. The system grants the Ministry of Finance the legal authority to estimate state revenues for an extended period of up to 10 fiscal years, effectively relying on data, estimates, and plans submitted by various government agencies.

This mechanism features high flexibility, allowing the Ministry of Finance to review and adjust these estimates periodically or upon any emergency economic and financial changes in local or global markets, thereby increasing the accuracy of financial forecasting and reducing estimation gaps in the general budget.

The system organizes revenue collection mechanisms, as government agencies are committed to collecting due revenues on their specified dates, recording them during the fiscal year, and transferring all their revenues to the Ministry of Finance's account with the Saudi Central Bank according to the dates specified by the executive regulations.

Debt collection

Regarding government receivables, the system obliges agencies to demand payment from the debtor on the next working day following the debt's due date. If payment is not made within 45 working days from the date of demand, the necessary legal procedures for debt collection commence.

It also allows flexibility in handling government debts, as it permits postponement of debt collection for a period not exceeding one year in emergency cases, and emphasizes that state debts are privileged debts with priority in collection and are not subject to statute of limitations.

The system sets controls for exemption and installment payments. Partial or full exemption from a debt not exceeding one million riyals is possible according to specific controls, including verifying the debtor's inability to pay. Exemption from debts exceeding one million riyals requires the approval of the Prime Minister based on the recommendation of the Minister of Finance.

It also allows installment payments for debts not exceeding one million riyals for up to 5 years, while larger debts or those exceeding 5 years can be paid in installments with the approval of the Minister of Finance or his delegate, provided the installment period does not exceed 25 years.

From collection to revenue management

Specialists told Asharq Al-Awsat that the system represents a shift in the management of government resources, from focusing on revenue collection to building an integrated system encompassing planning, estimation, collection, and receivables management, thereby enhancing public finance efficiency and supporting financial sustainability targets in Saudi Arabia.

In this context, Dr. Abdullah Al-Meer, Assistant Professor of Economics at King Fahd University of Petroleum and Minerals, told Asharq Al-Awsat that the new system represents a transition to a more comprehensive model for managing government revenues, starting from revenue estimation and planning, through collection operations, and ending with debt and receivables management and performance oversight.

He added, 'The updated system represents a shift from a model focused on revenue collection to full management of the government revenue cycle, starting from estimation and planning, through collection, and ending with debt and receivables management and performance oversight.'

Minister of Finance Mohammed Al-Jadaan speaking at the 2026 Budget Forum (archive - Asharq Al-Awsat)

He explained that the most prominent transformations brought by the system are the shift to strategic revenue management, noting that the previous system focused more on inventorying revenues and collecting due debts, while the new system adds the concept of medium- and long-term financial planning.

Al-Meer pointed out that the system enables government agencies to estimate revenues for periods extending to 10 years, with re-evaluation upon economic changes, explaining that this 'will reflect in increasing the accuracy of government revenue forecasting, improving budget preparation in the medium and long term, and enhancing the ability to manage financial risks.'

Enhancing financial efficiency

Al-Meer affirmed that the new system will contribute to raising financial efficiency by narrowing the gap between estimated and collected revenues, in addition to enabling faster procedures for claiming government receivables immediately upon maturity.

He said, 'The system obliges government agencies to participate in revenue estimation and develop specialized units for revenue development when needed,' explaining that this enhances the agencies' responsibility for managing their financial resources and raising collection efficiency.

Regarding non-oil revenues, Al-Meer expected the system's impact to be positive, as it gives government agencies direct responsibility for revenue development, not just collection.

He added, 'Developing non-oil revenues does not depend only on imposing fees or new income sources, but is also linked to raising the efficiency of current revenue management and improving collection mechanisms and management of government receivables.'