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The amount of monetary support that will be given to beneficiaries of Saudi Arabia’s Citizen's Account Program will be determined on Dec. 21, Saudi Arabia’s Minister of Labor and Social Development Ali Al-Ghafis told Argaam.
Payments under the program will begin on the same date, news outlets reported.
A total of 3.7 million families have registered for the program, representing 13 million citizens, Al-Ghafis said in a press conference held on Tuesday to announce the Citizen's Account policies.
Registration for the program is still open, he added.
The potential impact of increases in fuel and electricity prices has been calculated according to average oil prices and electricity consumption in summer time, he said.
The budget of the Citizen’s Account program is variable, depending proportionally on any rise or drop in energy prices, he added.
There are subsidized goods and now direct monetary subsidies provided to the citizens, he said, adding that a committee including the ministers of economy, finance, and social development will convene quarterly to review subsidies.
Speakers in the conference explained the eligibility criteria for the Citizen’s Account program vary according to the number of dependents within a family, their age, and their total monthly income.
The allowance provided depends the following:
- The average variation in monthly expenditure on energy products.
- The average indirect impact from industrial and commercial sectors to the families.
- The average additional monthly expenditure on food and beverages as a result of applying the value-added-tax (VAT).
Government subsidies will be affected by the following factors:
- Changes in world oil prices and their impact on local prices.
- The increase in families’ average monthly expenditure as a result of correcting the energy prices or increasing expatriates’ compensations.
- Rate of VAT.
The Saudi cabinet on Tuesday approved the Citizen’s Account program, aimed at easing the impact of subsidy cuts and new taxes on low and middle-income families in the Kingdom.
Beneficiaries of the program have to be Saudi citizens (with the exception of the son or daughter of a citizen and non-Saudi spouse) and permanently residing in the country.
Allowances under the program will be reviewed on a quarterly basis to ensure adequate support for eligible Saudi households.
The cabinet on Tuesday also ratified gradual changes fuel and electricity prices starting in the first quarter.
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