New handouts to citizens to cost about $13 bln: report

The special allowance for state employees and military personnel announced by Saudi Arabia’s King Salman on Friday will cost about SAR 50 billion ($13.3 billion) this year, Saudi-owned Al Sharq Al Awsat newspaper reported, citing the country’s information minister.

“The allocation of SAR 50 billion for this decree indicates the leadership’s concern for the people’s comfort and quality of living,” Minister of Culture and Information Awwad bin Saleh Alawwad was quoted as saying.

An annual bonus, effective from January 1, allows the payment of a monthly cost of living allowance at SAR 1,000 for the government staff and military personnel for one year.

Last week, Saudi Arabia nearly doubled domestic gasoline prices as part of its reform economic reform measures. The country also revised its electricity tariff and started the levy of 5 percent value-added tax (VAT).