Oil crashes after Saudi Arabia introduces price war
The Kingdom, 87%of whose spending plan revenues originate from the petroleum sector, has actually currently announced some ” unpleasant” financial decisions and signalled a rare readiness to downsize its regional operations to raise itself out of the “worst crisis in years”.
On May 11, the official Saudi Press Company( MEDSPA) reported that the Kingdom decided to take a multitude of austerity measures, consisting of raising value-added tax (BARREL) and cutting a cost of living allowance for civil servant. The allowance, which was presented in 2018 to assist workers tide over the results of austerity steps taken throughout the last oil crash, will be suspended as of June 1, and the BARREL, which was likewise presented in 2018, will be increased to 15%from 5%since July 1, MEDICAL SPA reported, pointing out a declaration of the Ministry of Financing.
Last month, the Kingdom revealed a unilateral ceasefire in Yemen after five years of war in the clearest signal that Riyadh seeks to depart from its costly military intervention in the neighbouring nation parts of which are managed by Shia Houthis rebels.
Also read: Think Piece
