Saudi Arabia Updates State Revenues Law to Boost Fiscal Discipline, Transparency

Saudi Arabia’s Cabinet has approved an updated State Revenues Law as part of efforts to enhance fiscal governance, improve government revenue management and strengthen financial sustainability across the Kingdom.

The revised law, approved during the Cabinet’s session on Tuesday, introduces measures to improve the efficiency of revenue collection, strengthen compliance with government payments and establish clearer procedures for managing public receivables.

Minister of Finance Mohammed Al-Jadaan said the updated legislation would enable government entities to enhance revenue estimation mechanisms, improve the collection of government dues and streamline the settlement of outstanding debts while ensuring that payment procedures take into account taxpayers’
circumstances.

The new framework forms part of Saudi Arabia’s broader financial reforms aimed at improving governance, transparency and efficiency within the public sector, in line with the objectives of Saudi Vision 2030.

The law sets out clearer roles and responsibilities for relevant government bodies and introduces improved mechanisms for estimating government revenues over the medium and long term. These measures are expected to support better financial planning and enhance the accuracy of revenue forecasts.

It also establishes procedures for collecting government receivables and regulates payment and instalment arrangements under specific controls designed to promote fiscal discipline.

The updated legislation reflects Saudi Arabia’s continued efforts to modernise its financial system and ensure more effective management of public resources as the Kingdom advances its economic transformation agenda.

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