Saudi king orders new allowances to offset rising cost of living

[Arabi]

RIYADH (Reuters) - Saudi Arabia’s King Salman on Saturday ordered a monthly payment of 1,000 riyals ($267) to state employees over the next year in compensation for rising cost of living after the government hiked domestic gas prices and introduced value-added tax (VAT).

In a royal decree published by state news media, the king also ordered the payment of 5,000 riyals to military personnel serving at the front lines with Yemen where the kingdom is fighting a nearly three-year-old war.

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

The new payment orders were an acknowledgment of “the increased burdens for some segments of the population following from the necessary measures which the state took to restructure the economy,” according to the decree.

King Salman directed the state to bear the burden of VAT in some situations, including special health and education services as well as the first purchase of a house that is valued up to 850,000 riyals ($226,660). Allowances for students, retirees and social security recipients were also boosted.

Saudi Arabia will slow plans to eliminate subsidies for a wide range of energy products, according to a new long-term fiscal plan in the 2018 state budget.

Reuters

 

[EmeraldRabbit]

Just state employees huh. With 21 million saudis and 10.4 million expats, that still nothing to cover the rise in costs.

 

[denel]

Of course, he steals money from other "princes" and splurges on painting, home, yatch and gives left over to the rest.

Amazing ..

 

[Yingluck]

The Al Saud family will reap the fruits deliberating inculcating moron and crackpotism towards the citizen. An informed citizenry and middle-age feudal ruling class are never compatible.

Saudi citizens including the GCC citizens are deliberately kept stupid and breast feed like babies, meanwhile the Al Sheikh family poison their mind with wahabbism.

All things are fine when oil is plentiful price is high.

Time has changed. Now the state need revenue stream. The whole nation are low IQ. They cant produce. So Saudi will run an unsustainable deficit.

When monies run out, angry people will kick out the ruling class.

 

[Falcon29]

The Al Saud family will reap the fruits deliberating inculcating moron and crackpotism towards the citizen. An informed citizenry and middle-age feudal ruling class are never compatible.

Saudi citizens including the GCC citizens are deliberately kept stupid and breast feed like babies, meanwhile the Al Sheikh family poison their mind with wahabbism.

All things are fine when oil is plentiful price is high.

Time has changed. Now the state need revenue stream. The whole nation are low IQ. They cant produce. So Saudi will run an unsustainable deficit.

When monies run out, angry people will kick out the ruling class.

Quit false flagging dude.

 

[Yingluck]

The problem of proud GCC is they dont know that their days are numbered. Instead of sharing oil wealth, they should let their people fish.

I suggest they try bring in slave shop Foxconn from Taiwan, and let those managers abuse their female. No need to share petro wealth, and these factory operator will generate immense wealth for the state.

 

[Hack-Hook]

Honestly these allowances are counter productive to the purpose of reform that KSA stated want to undertake .
And more importantly does state employee actually need it ? My take is that their wages are already high enough to compensate the rise of the living expenses due to reforms that are in progress.