ECONOMY

Saudi royal handouts to cost about $13 billion, minister says

Minister of Culture and Information Awwad bin Saleh Alawwad. (Supplied)

A package of handouts to Saudi citizens to compensate them for cost of living increases will cost the government about 50 billion riyals ($13.3 billion) this year, the information minister was quoted as saying on Sunday.

"The allocation of 50 billion riyals for this decree indicates the leadership's concern for the people's comfort and quality of living," Minister of Culture and Information Awwad bin Saleh Alawwad told the Saudi-owned Asharq Al-Awsat newspaper.

On Saturday, King Salman ordered a monthly payment of 1,000 riyals to state employees over the year in compensation for the rising cost of living after Riyadh hiked gasoline prices and introduced value-added tax. Pensioners and soldiers will also be given bonuses, while the government will bear the cost of VAT in some situations, such as the first purchase of a home.

Alawwad also repeated previous government statements indicating Riyadh would spend 30 billion riyals this year on the Citizens Account, a household allowance scheme designed to reduce the impact of austerity policies on low and middle-income Saudi families.

Saudi Arabia, the world's top oil exporter, roughly doubled domestic gasoline prices last week as part of reforms aimed at diversifying its economy. A 5 percent VAT on a broad range of goods and services came into effect on the same day.
 

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Last Update: Sunday, 7 January 2018 KSA 13:25 - GMT 10:25
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