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.

Latest articles

The US and Pakistan signed an agreement to prevent the abduction of Children

Washington DC: The US State Department has announced that it has signed a legal framework between the United States and Pakistan to...

Google made an Announcement of 100,000 Scholarships in Data Analytics, Project Management and Many More

Following the current increase in unemployment due to the global pandemic, Google has announced 100,000 scholarships based on data analytics, project management...

Pak Suzuki offers more than Rs, 170,000 discounts on its Automatic car variants

Pak Suzuki Motor Company (PSMC), recently announced on social media, offers an excellent incentive for those who choose cars with Suzuki Auto...

Trump is pushing Obama again as the COVID-19 sensation worsens in the US.

On Monday, President Trump again tried to blame the Obama administration for its response to the coronavirus. White House...

Related articles

2 Comments

Leave a reply

Please enter your comment!
Please enter your name here

Translate »