Article 37 of the Saudi Municipalities Law
المادة 37 من نظام البلديات والقرى
If approval of the municipality's budget for the new year is delayed for any reason, ordinary revenues and expenditures continue on the basis of the previous budget until the new one is approved.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا لم يتم اعتماد ميزانية البلدية للسنة المالية الجديدة من الجهة المختصة في حينها لأي سبب من الأسباب، تبقى الواردات والنفقات العادية جارية على أساس الميزانية السابقة، إلى أن يتم اعتماد الميزانية الجديدة .
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 37 explained in plain English
This article deals with a practical situation: what if the new fiscal year begins and the municipality's budget has not yet been approved?
- Condition for application: the competent body does not approve the budget for the new fiscal year in time, for any reason; the cause of the delay does not matter.
- The rule: ordinary revenues and expenditures continue on the basis of the previous budget.
- Duration: until the new budget is approved.
The aim of this provision is that the municipality's services and daily work do not stop because of a procedural delay. The municipality keeps collecting its revenues and paying its ordinary expenditures as in the previous year.
The important limit is the word 'ordinary'; the article speaks of ordinary revenues and expenditures, and does not mention non-ordinary expenditures or new projects. It should not be understood to permit every expenditure on the basis of the previous budget.
Before it comes Article 36, which requires the head of the municipality to submit the draft budget to the municipal council to be discussed under the procedures and dates set out in the regulations. It is followed by Article 38, which requires the head to submit the final account for the fiscal year to the municipal council within two months at most of its end.
Practical example
The new fiscal year began and the budget of a municipality in Rabigh governorate had not yet been approved. Under this article the municipality keeps collecting its revenues and paying its ordinary expenditures, such as routine cleaning work, on the basis of the previous year's budget until the new budget is approved.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 37 of the Saudi Municipalities Law
What happens if approval of the municipality's budget is delayed?
Ordinary revenues and expenditures continue on the basis of the previous budget until the new budget is approved.
Does the reason for the delay in approving the budget matter?
No. The rule applies if the budget is not approved in time for any reason.
More articles on Municipal Budget and Final Accounts
- Article 23
The article lists the matters in which the municipal council takes decisions, such as the budget, final account, urban plan, regulations, fees and fines, and oversight of revenues and expenditures.
يتخذ المجلس البلدي قراراته في جميع المسائل المتعلقة بالبلدية طبقا لهذا النظام وغيره من الأنظمة واللوائح وخاصة فيما يلي: 1 - إعداد مشروع ميزانية البلدية . 2 - إق
- Article 29
The article requires the head of the municipality, as head of its executive authority, to take the measures needed for it to perform its duties, including managing its funds, preparing and executing the budget and concluding contracts.
على رئيس البلدية بصفته رئيسا لسلطتها التنفيذية اتخاذ جميع التدابير اللازمة لقيام البلدية بواجباتها وفق هذا النظام وغيره من الأنظمة واللوائح والقرارات، وخاصة ما
- Article 34
The municipality's budget is prepared under the regulations on that, and follows the state budget as to its start and end.
يتم إعداد ميزانية البلدية وفق الأنظمة الخاصة بذلك، وتتبع من حيث بدئها ونهايتها ميزانية الدولة .
- Article 36
The head of the municipality submits the draft budget to the municipal council, which discusses it under the procedures and dates set out in the regulations.
يقدم مشروع الميزانية من رئيس البلدية إلى المجلس البلدي ، ويناقش المشروع طبقا للإجراءات والمواعيد المنصوص عليها في اللوائح.
- Article 38
The head of the municipality must submit the final account for the fiscal year to the municipal council within two months at most of that year's end.
على رئيس البلدية أن يقدم إلى المجلس البلدي خلال شهرين على الأكثر من انتهاء السنة المالية الحساب الختامي لتلك السنة.
- Article 40
The procedures for spending the municipality's money, collecting its revenues and managing its employees, staff and workers are set by regulations, taking into account the nature of municipal work and approved by the Council of Ministers.
تنظم إجراءات صرف أموال البلدية واستيفاء وارداتها، وإدارة وتنظيم شئون موظفيها ومستخدميها وعمالها بلوائح يراعى فيها طبيعة أعمال البلديات، يصادق عليها مجلس الوزراء
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.