The Saudi Finance Minister, Mohammed al-Jadaan, revealed that the value of the economic support packages approved so far in Saudi Arabia has reached 180 billion riyals, which constitutes 8 percent of non-oil GDP, with the aim of helping the private sector cope with the effects of the Corona pandemic.
Al-Jedaan pointed out that the government is taking measures to reduce expenditures with a strong decrease in revenues, explaining that the strong decline in revenue will continue until the next fiscal year, stressing the recommendations of the rational leadership to provide support packages to protect the jobs of citizens, and support for companies, stressing that the Saudi citizen is a priority in future plans.
He pointed out that "Saudi Arabia has not faced a crisis like this for decades, and therefore it is necessary to reduce expenditures and direct part of it to health care," noting that the government is looking at many options and steps taken to curb expenditures are not sufficient.
He also announced the government's decision to borrow more from global markets, but that alone is not enough, and the government should look at the list of expenditures in the budget and provide the least harm to citizens.
Al-Jedaan pointed out that they will raise recommendations soon regarding the expenditures that must be reconsidered. The sustainability of public finances requires taking tough measures that may be painful, but so far it is difficult to predict the duration of the pandemic and it must be prepared well.
Source (Al-Arabiya.net website, Edited)
