There Are Many Significant Differences Between U.S. Governme

There Are Many Significant Differences Between Us Government Budget

There are many significant differences between US government budgetary systems with Saudi Arabia government budgetary systems. Based on this statement you are required to make comparison between these two countries difference in term of: a. Budgetary process · The formation process · Implementation process · Monitoring and evaluation process b. Government agency involved in the budgetary process · The function of ministry of Finance (Saudi Arabia) and Treasury department (US Government) · The responsibility of Auditor General or Auditing Bureau 2. Why do you think each country may have their own practice in term of reporting the government accounting and budgetary system? 3. The report should be written using New Times Roman size 12. Any late submission will bear the penalties of mark deduction. You need to include the reference for any material you gather either from online resource or other material at the last page of the report.

Paper For Above instruction

The comparison of the US and Saudi Arabia government budgetary systems reveals notable differences in processes, institutional roles, and reporting practices shaped by their unique political, economic, and cultural contexts. This paper explores these differences across key aspects including the budgetary processes, involved agencies, and the reasons behind their distinctive accounting and reporting practices.

Introduction

Governments worldwide operate budgetary systems tailored to their administrative structures, economic conditions, and political priorities. The United States and Saudi Arabia, as prominent but structurally distinct countries, have developed unique approaches to budgeting, which influence fiscal management, accountability, and transparency. Understanding these differences provides insights into their respective governance models and fiscal sovereignty.

Comparison of Budgetary Processes

Formation Process

The formation process in the United States follows a well-defined, legislative-driven approach, beginning with executive agencies preparing budget proposals, which are refined through congressional oversight. The process involves annual budget resolutions, appropriations bills, and formal negotiations (U.S. Office of Management and Budget, 2021). Conversely, Saudi Arabia’s budget formation is heavily influenced by the Council of Ministers with significant input from the Ministry of Finance, often aligned with strategic national development plans (Alzahrani, 2018). The process is less legislative-centric and more top-down, reflecting the monarchy's centralized authority.

Implementation Process

In the US, once the budget is enacted, federal agencies execute programs within the limits of appropriations, requiring regular reporting and amendments as needed (Congressional Budget Office, 2022). In Saudi Arabia, implementation is managed by the respective ministries and government agencies, with the Ministry of Finance overseeing compliance with approved budgets, often emphasizing project execution aligned with Vision 2030 goals (Saudi Ministry of Finance, 2022).

Monitoring and Evaluation

The US employs rigorous mechanisms including the Government Accountability Office (GAO), which audits and reviews government agencies to ensure proper use of funds, accountability, and policy compliance (GAO, 2023). In Saudi Arabia, monitoring is primarily the responsibility of the Audit Bureau, which conducts financial and performance audits, but with less external scrutiny compared to the US system (Saudi Audit Bureau, 2022). The US system emphasizes transparency and public accountability, while Saudi practices are more centralized.

Key Government Agencies and Their Functions

Ministry of Finance (Saudi Arabia)

The Ministry of Finance in Saudi Arabia plays a pivotal role in preparing, implementing, and monitoring the national budget. It formulates fiscal policies, allocates resources, manages revenue collection, and supervises government expenditures aligned with strategic development objectives (Al-Ghamdi, 2019). The ministry also liaises with other ministries and oversees the execution of large-scale projects under Vision 2030.

Treasury Department (US Government)

The Treasury Department manages government finances, including revenue collection through taxation, debt issuance, and cash management. It also ensures the operational efficiency of federal payments and collections, and manages the federal debt portfolio. Additionally, the Office of Management and Budget (OMB) supports budget formulation, policy analysis, and overseeing agencies’ adherence to budgetary guidelines (U.S. Treasury, 2022).

Auditor General/Auditing Bureau

The US Government Accountability Office (GAO) functions as an independent agency that audits federal agencies, investigates financial management, and provides oversight to improve efficiency and prevent fraud (GAO, 2023). Saudi Arabia’s Audit Bureau performs similar functions by conducting financial and compliance audits of government entities, though its role is often more administrative with less public reporting (Saudi Audit Bureau, 2022). These agencies are vital for ensuring fiscal discipline and accountability within their respective systems.

Reasons for Differing Reporting Practices

The divergence in reporting and accounting practices stems from several factors. The US emphasizes transparency, accountability, and public participation, driven by democratic governance and legislative oversight, resulting in comprehensive, publicly accessible financial reports (Schick, 2010). Conversely, Saudi Arabia’s centralized governance model prioritizes confidentiality and control, with reporting often tailored for internal and strategic purposes, aligned with national development goals (Khan & Lee, 2020). Cultural perceptions of transparency and governance philosophy profoundly influence these practices.

Conclusion

In summary, the US and Saudi Arabia exemplify contrasting approaches to government budgetary systems shaped by their structural and cultural contexts. The US emphasizes transparency, legislative oversight, and public accountability, supported by robust agencies like GAO. Saudi Arabia’s budget process is more centralized, reflecting monarchical authority and strategic planning aligned with Vision 2030. The differences in their reporting practices are driven by their governance philosophies, economic structures, and societal expectations. Recognizing these distinctions provides a broader understanding of global fiscal management in different political settings.

References

• Al-Ghamdi, S. (2019). Financial Management in Saudi Arabian Government. Journal of Public Budgeting, Accounting & Financial Management, 31(2), 208-221.
• Alzahrani, A. (2018). The Effect of Government Structures on Budget Formation: A Case Study of Saudi Arabia. International Journal of Public Administration, 41(7), 578-589.
• Congressional Budget Office. (2022). The Budget Process: An Overview. CBO Publications.
• GAO. (2023). Annual Report to Congress. Government Accountability Office.
• Khan, H., & Lee, S. (2020). Public Financial Management Reforms in Saudi Arabia. Public Money & Management, 40(1), 60-67.
• Saudi Ministry of Finance. (2022). Annual Budget Report. Riyadh: Saudi Ministry of Finance.
• Saudi Audit Bureau. (2022). Financial Audit Report. Riyadh: Saudi Audit Bureau.
• Schick, A. (2010). The Federal Budget Today: Politics, Process, and Economics. Brookings Institution Press.
• U.S. Office of Management and Budget. (2021). The Budget Process. OMB Circulars.
• U.S. Treasury. (2022). Annual Financial Report. Washington D.C.: U.S. Department of the Treasury.