Riyadh - Mubasher: The Saudi government is trying to ease the effects of the recent economic reforms, which included tax increases and subsidy cuts, according to a recent report by CNN.
Analysts believe that the move comes in line with the kingdom’s efforts to revitalize and diversify its economy, and reduce the tendency on oil exports.
Saudi Arabia has recently deposited the first instalment of SAR 2 billion ($533 million) into the kingdom's household allowance program, according to the minister of labour and social development, Ali Al-Ghafis. In a program that has around 10.6 million beneficiaries.
The citizens Account is a cash hand-out for low- and middle-income citizens to offset the impacts of the recent economic reforms and energy price increases.
The next monthly instalment is scheduled to be transferred on Tuesday 10 January 2018.
The Saudi government recently introduced a new 5% sales tax, and rose gas prices, and King Salman bin Abdulaziz has announced issued a royal decree that included measurements to ease burdens on citizens.
King Salman has ordered that a monthly stipend of SAR 1,000 be paid for Saudi citizens for a year as a cost of living allowance.
The Saudi government will also pay SAR 5,000 in rewards to military personnel serving at the southern frontline, as well as SAR 500 per month as a cost of living allowance for the retirement pension paid by the Public Pension Agency and the General Organisation for Social Insurance for the beneficiaries of the citizens for one year.
The King has also ordered increasing the stipend payments for male and female students by 10% for one year.
The government of the Kingdom of Saudi Arabia will also bear the burden of the value-added tax (VAT) in some cases, including special health and education services as well as the first purchase of a house that is valued at up to SAR 850,000, according to the Royal Decree.
“The stimulus, which is equivalent to around 2% of GDP, will support economic growth in the near term,” according to a report by Capital Economics on Monday.
