The Basic Principles of the Fiscal Framework of the Seventh Five Year-Development Plan (2006-2010)

1-     TO strive to increase the non-oil revenue.

2-     Realizing sustainable levels through expenditure rationalization.

3-     In allocation of the public finance resources, highest priority shall be awarded to the processes that aim at increasing the productivity of various sectors, with oil and gas sectors at the forefront, and enhancing the oil reserves through support and activation of the new exploration operations.

4-     Transferring to the State General Reserve Fund the Value of 15 thousand barrels per day at the Budget price.

5-     In the Plan's estimates there shall be no listing of transfers to the SGRF and the Emergency (ERF).

6-     The deficit shall be financed through borrowing and withdrawal from the reserves.

7-     Enhancing the financial reserves of the SGRF through transferring to it part of surplus of the State General Budget that may realized during the plan period, and improving the efficiency of its investments.

8-     An Emergency Reserves Fund shall be created to meet the deficit that may occur in the plan, and part of the General Budget surplus that may be realized shall be transferred to it.

9-     TO maintain the volume of Public dept within the internationally approved safe limit, and to strive to restructure it so to reduce the burden of its service.

10-The government institutions shall resolve any emergency and necessary increase in its expenditure by reorganizing its priorities, so as to meet such increase from the allocated resources. However, the reprioritization processes shall not contradict with main objectives and its fiscal principles.