Finance Minister Fahd Al-Jarallah has unveiled that, as part of the government’s initiative to initiate projects outlined in its work program, the state is taking steps to introduce new charges for utilizing public amenities and services.
This move aims to augment and diversify the state’s revenue streams while reforming the structure of public finances. The focus is on urging relevant government entities to determine appropriate pricing for their services, adhering to the established legal framework for fee imposition, reports Al-Rai daily quoting the minister.
The Ministry of Finance is presently in the process of reviewing regulations concerning the utilization of state-owned private real estate and service charges.
Responding to a query from MP Muhalhal Al-Mudhaf during a parliamentary session regarding potential service fee implementations, Al-Jarallah shared the ministry’s response affirming that the government’s work program for the seventeenth legislative term (2023/2027), particularly under the first axis of stabilizing public finances, encompasses plans to enhance state revenues. This includes launching a pricing mechanism for public services, fees, and violations, subject to periodic updates.
Additionally, the program aims to establish a comprehensive framework for the periodic reassessment and pricing of state-owned real estate properties, considering fairness and productivity metrics.
Al-Jarallah appended the response from the Public Institution for Social Security (PIFSS), addressing an aspect of the question pertaining to higher directives urging profit distribution to retirees.
The response clarified that, in accordance with the organization’s law, there is no legal objection to granting beneficiaries a portion of the organization’s profits.
However, this distribution is presently not feasible due to a realistic constraint, namely the actuarial deficit, until surplus funds are ascertained and approved by the Foundation’s Board of Directors.