Corona devours 50 billion riyals from the Saudi budget

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Finance Minister and Minister of Economy and Planning in charge of Saudi Arabia, Mohammed Al-Jadaan revealed that the government approved a partial reduction of nearly 50 billion riyals, or less than 5% of the total expenditures in the 2020 budget, as part of financial precautionary measures to counter the effects of the global epidemic Corona (Covid- 19).

And the Saudi Press Agency (SPA) reported that, given the economic and global conditions resulting from the consequences of the virus outbreak, the sharp decline in the outlook for global economic growth and the negative impact on oil markets, and its direct impact on public finances in Saudi Arabia, the government took measures to reduce the impact of low prices Oil, and additional measures will be taken to deal with the expected price drop.

The minister indicated that the government worked on preliminary measures to ensure the provision of the financial requirements necessary to implement preventive and direct measures to deal with the consequences of the epidemic and limit its spread to protect government installations and agencies and the continuity of their work.

He stressed that the government will provide all the additional credits required, and provide the necessary health services for prevention, treatment and non-proliferation, while confirming the government’s keenness on the priority of social spending, and reorienting government spending with what the stage requires socially and economically.

Al-Jadaan also stressed that in light of the remarkable development in public financial management, and that there is appropriate flexibility to take measures and measures in the face of emergency shocks with a high level of efficiency, the government has approved a partial reduction in some items with the least social and economic impact, and the size of the partial reduction in those items About 50 billion riyals, or less than 5% of the total expenditures approved in the 2020 budget.

He also stressed the strength of the government’s financial position, as it maintained huge government reserves and assets that enable it to deal with emerging challenges, and reduce the impact on its goals in maintaining financial sustainability and economic stability in the medium and long term.

He said that due to the possible continuation or exacerbation of the effects of the spread of the virus and its consequences on the global economy, the developments will be reassessed, items of expenditures reviewed and appropriate decisions taken in a timely manner, and the government will continue to raise the efficiency of financial and economic performance, enabling it to preserve the financial and economic gains made During the last period.

(SPA, Reuters)





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