A statement issued by Finance Minister Of Saudi Arabia Mohammed Al-Jadan said that it has been decided that the housing allowance will be stopped from June 2020 and the value added tax will be increased from 5% to 15% from July 1. The country will borrow $60 billion to cover the huge budget deficit.
Saudi Arabia GOVT Plan
Al-Jadan said that with oil prices falling by two-thirds since the beginning of this year, Riyadh could lose half of its revenue, which is 70 percent of the country’s revenue.
However, it is unclear whether the prince’s 5 trillion city plan will be affected. The project was thwarted last month when it was killed by government forces after a local Hawitat tribe man refused to provide land for the project.
Campaigners say other members of the Badu tribe have been detained for not leaving the area and not signing documents.