Saudi Finance Ministry: additional measures to confront economic impact of coronavirus pandemic

Riyadh

Saudi  Finance Minister and Acting Minister of Economy and Planning, Mohammad Aljadaan, highlighted the importance of the measures undertaken to protect the Saudi economy and overcome the unprecedented financial and economic ramifications of the coronavirus pandemic.

The Minister stressed that these measures complement the previously made decisions to mitigate the negative effects of the crisis from a health, economic and social perspective, Saudi Press Agency (SPA) reported. He added that the government is committed to taking necessary and timely measures to protect citizens and residents, as well as the economy to mitigate the effects of the crisis and its ramifications.

‏Aljadaan said that the Ministry of Finance and the Ministry of Economy and Planning have presented measures to tackle these challenges, and a directive has been issued to undertake the most suitable and least harming measures.

The measures budget is around 100 billion Saudi riyals; including cancelling, extending, or postponing some operational and capital expenditures for some government agencies, as well reducing provisions for the initiative of a number of Vision Realization Programs and major projects for the year 2020. In addition, the cost-of-living allowance shall be discontinued as of June 2020 and VAT shall increase from 5% to 15% as of July 2020.

‏The Minister concluded that we are facing a crisis the world has never seen the likes of which in modern history, a crisis that requires governments to deal with it vigilantly and to make the suitable decisions at the right time and adapt to conditions in a way that safeguards public interest, protects citizens and residents and provides basic needs and necessary healthcare services.