Financial and Economic Dictionary

Working Capital

The capital or funds available for a business's day-to- day operations, calculated as current assets minus current liabilities.

Capital Expenditure

Net Income

The total earnings of a business or individual after deducting expenses, taxes, and other costs.

Fiscal Sustainability

The state's ability to meet its financial obligations and provide sufficient resources to fulfill those commitments when they come due, which is achieved through sound policies aimed at diversifying revenues, improving expenditure efficiency, and controlling the budget deficit to reduce the levels of increase in public debt and its burdens.

Budgeting

Estimates of the expected revenues and expenditures over a specific financial period (usually a fiscal year), and the government’s plans for allocating resources to various sectors.

Budget

The actual amounts allocated or spent based on the estimates outlined in the general budget. The public accounts reflect the actual financial status after the execution of the plans and goals defined in the budget, and they are monitored periodically to ensure they align with the expectations.

Expenses

What the government spends on various sectors, such as education and health, for development and improving citizens' standard of living. Expenditures are divided into operating expenses and capital expenditures.

Framework Agreement

A formal agreement between two or more organizations of the government bodies with suppliers or contractors which contains conditions and regulations of the contract.

Financial Impact

The estimated or realized value of the costs, reflecting the change in the financial position of the entity in terms of expenses, revenues, or financial efficiency.

Repurchase Agreement

A financial transaction where one party sells securities to another with an agreement to repurchase them at a specified future date and price, often used in short-term funding.

Revenues

The total revenues collected by the government from both oil and non-oil revenues. This includes revenues from oil production and sales, taxes and duties on goods and services, as well as returns on assets.

Finance

Financial resources provided for business operations, projects, or investments.

Inflation Rate

The percentage change in the price level of goods and services over a specified period.

Gross Domestic Product (GDP)

The total value of goods and services produced within a country during a specific period of time.

Capital Expenditures

The total amount spent by the government on infrastructure development projects and the acquisition of fixed assets such as construction, equipment, and real estate for the purpose of economic and social development.

Debt Securities

A loan, debt or any other financial instrument issued by companies or governments resulting in interest or similar payments to the holder of the debt security until the maturity date and repayment of the principal – the face value of the debt security at the maturity date made by the issuer. Debt securities, including the entitlement to interest benefits, can be traded. There are many forms of debt securities, such as corporate bonds, government bonds, collateralized bonds, certificates of deposit and debenture.

Zero-Based Budgeting (ZBB)

A budgeting method where expenses must be justified from zero rather than being based on previous budgets.

Market Value

The price an asset gets in a marketplace.

Asset Management

The process of managing investments and assets for beneficiaries with the aim of increasing returns while managing risks.

Depreciation

The systematic allocation of the depreciable amount of a fixed asset over its useful life. It is used in accounting to distribute the cost of an asset over the years it is expected to be in use.