Saudi Arabia Will Give Cash to Poorer Citizens Hit by Austerity - Bloomberg

Saudi Arabia Will Give Cash to Poorer Citizens Hit by Austerity - Bloomberg:

"Saudi Arabia will begin cash transfers to low- and middle-income citizens as it plans to raise domestic energy prices, part of a program to overhaul the kingdom’s oil-dependent economy. Monthly cash payments will start on Dec. 21 to compensate Saudis affected by measures including subsidy cuts and new taxes, officials said on Tuesday. The cabinet approved the so-called Citizen’s Account program, which will be reviewed quarterly, at the same time they ratified a gradual change in the prices of fuel and electricity starting in the first quarter. Crown Prince Mohammed bin Salman is leading the effort to reduce Saudi Arabia’s addiction to oil, but many of the reforms he’s implemented have hit the wallets of Saudis. He wants to diversify the economy, create the world’s largest sovereign wealth fund and increase employment -- goals many in the kingdom support. Less popular are cuts to long-standing subsidies, reduced pay for civil servants -- a measure that was later reversed -- and new taxes, including a value-added tax planned for January. The Citizen’s Account is designed to offset those measures with extra cash for those that need it most. "



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