Saudi Arabia is in deep crisis, the royal GOVT has tripled its value-added tax, borrowed $60 bn

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.

 The move in Saudi Arabia comes as Corona is pushing ahead with an emergency plan to cut government spending to deal with the economic losses caused by the virus and falling oil prices.

Saudi Arabia GOVT Plan

 The government is “canceling, expanding or postponing” spending on major government projects that are being introduced as part of an expedient reform program to diversify the oil-dependent economy.

 These measures were necessary to accelerate state finances in the face of declining global demand for raw materials due to the corona virus and a sharp decline in oil revenues.

 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.

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