The Kingdom of Saudi Arabia, one of the largest oil-producing countries in the world, says it will cut salaries, sell national assets, and hike fuel prices in 2017 and beyond.

Despite recovering oil prices, Saudi, which borrowed to fund budget deficit for the first time ever in October 2016, says if these measures are not taken, “the government is likely to face serious fiscal challenges in the medium and long term, one of which is a potential chronic fiscal imbalance”.

According to its Fiscal Balance Programme (FBB) obtained by TheCable, the Kingdom plans to rid the deficits in the economy, and also place taxes on expatriates and some non-oil products, while reviewing allowances of government workers.

HIKE IN FUEL PRICE

The Kingdom says it plans “eliminating misdirected subsidies, and empowering citizens to choose and consume responsibly,” adding that “reduced energy prices also incentivize higher wasteful consumption”.

Saudi added that “subsidies will not be sustainable in the long term,” so it decided to hike prices in phased manner, from 2017 to 2020.

PRIVATISATION/SALE OF NATIONAL ASSET

The middle eastern county say “there are three further areas where the government is already taking steps to strengthen its fiscal position”, which include sale of national assets via a privatisation programme.

“Privatization: The privatization of government holdings will not only stimulate economic growth, but also improve the fiscal position,” the balanced budget 2020 plan read.

The country has been mulling the sale of a portion of Aramco, state-owned oil company, which is arguably the biggest oil company in the world.

TAX ON EXPATRIATES AND FAMILIES

After raising visa fees “for nationals of countries where bilateral agreements are not in place,” the Kingdom is planing to tax expatriates from July 2016.

“Saudi Arabia has one of the most liberal labour policies globally, with very few restrictions on importing foreign labour to work in the Kingdom currently, companies pay a levy of SAR 200 per month per expat employee, but only for expat employees that exceed the number of Saudi employees.

“Moving forward, the levy on all expats will be gradually revised upwards – which will provide an additional signal to employers to hire more Saudis.”

The taxes would move from about $27 to $213 per month from July 2017 to July 2020, respectively.

REVIEW OF SALARIES AND ALLOWANCES

“Public Sector Reform: The government has been very clear in its intent to contain the cost of public sector salaries and is implementing an efficiency program, which will reduce costs in the medium term,” the country said.

Refering to measures taken in 1980, when oil prices plunged, Saudi said “reducing the maximum overtime compensation from 50% to 25% of government salaries each month” was possible.

The government said it would be “restructuring government wages through revising the eligibility and feasibility of various allowances,” and may consider “adjusting and canceling a number of allowances, bonuses, and benefits”.

TAX ON “HARMFUL” NON-OIL PRODUCTS

Currently, neither Saudi nationals nor foreign labourers pay income taxes, and this policy will remain in place. However, value added tax (VAT) of five percent has been signed by the minister of finance.

It would also introduce excise tax on “specific products with harmful health effects to dis-incentivize consumption of such products”.

The taxes will be enforced in the second quarter of 2017.

Saudi, like many oil producing countries, have been heavily affected by the plunge of oil prices across the globe.

https://www.thecable.ng/saudi-arabia-to-hike-fuel-prices-sell-national-assets-cut-salaries-in-2017

lalasticlala

Ok.

This shows that even if the former administration didn't embezzle much we might still find ourselves where we are today.
Saudi is one of the largest oil producing countries still found themselves in these economic woes.
Who will they put the blames on?
I think this government should reduce the energy they use when it comes to blaming past administrations to minimal and focus it on policies that will take us out of this recession.
This blame game has given some assh*les temerity to point fingers even though they were part of the people that led us to where we are today,

A

So Nigeria should emulate them...... Where da fπvk are we heading to in the country...

Good move. I like Purposeful and focused Government. Nigeria is where it is today because of lack of vision and purpose , corruption and mediocrity.

It is clear that Nigerians are the only ones that think we are the only oil producing country going through tough times.... we think we do not need to make sacrifice to move forward .... we fail to understand that to achieve any lasting change ... you begin from today.

Anytime the apc demons want to fly a kite, they send their zombies to give us subtle "messages" of other countries dey do am too. Its ok, fuel prices have been increased, subsidy has been partially removed, salaries of civil servants is the keg of gun powder how does one reduce a take home pay that doesn't get home again because of Buhari's incompetence ? Its better the national assembly for example suffer this brunt, they should be paid only per seating with all other emoluments cancelled but I know the ruling party in the NA would never moot this idea

Buhary, please be FAST, sell Nigeria and let everyone relocate to Gabon.

Stalwert:
It is clear that Nigerians are the only ones that think we are the only oil producing country going through tough times.... we think we do not need to make sacrifice to move forward .... we fail to understand that to achieve any lasting change ... you begin from today.

I was reading this http://money.cnn.com/2016/10/25/news/economy/venezuela-breaking-point/ about Venezuela when i came upon this thread. Uve said it all, we need to make sacrifices now to reap the gains later!

So, what is op trying to say? I know that op is a diehard APC member. Is s/he advising the FG to do the same?

Firefire:
Buhary, please be FAST, sell Nigeria and let everyone relocate to Gabon.

Abi o?
PMB may consider this, most especially now that it's coming from one of the APC members.

Stalwert:
It is clear that Nigerians are the only ones that think we are the only oil producing country going through tough times.... we think we do not need to make sacrifice to move forward .... we fail to understand that to achieve any lasting change ... you begin from today.

most Nigerians know that we need to make sacrifice. The problem is with these IPOB PDP bad belle wannabes who are still campaigning two years after election spewing lies and rubbish everywhere. Instead of producing hard facts they rain invectives on you.

Enice:
most Nigerians know that we need to make sacrifice. The problem is with these IPOB PDP bad belle wannabes who are still campaigning two years after election spewing lies and rubbish everywhere. Instead of producing hard facts they rain invectives on you.

Unfortunate that they refuse to recover from electoral defeat.

This is how the mind of a typical Buhari supporter works,
He tries to justify the evil and poor policies of the Dullard that has put us in this situation, by comparing what is happening in Nigeria with other oil producing, Leaving out major facts about those countries
In Saudi Arabia, healthcare and education is totally free for it Citizens,
Is it free in Nigeria?

So Poor Nigerians should bear the brunt of his inept policies while he spends 144million on just foodstuffs for himself next year,
Hasn't reduced or totally do away with his many allowances,
Hasn't told his cabinet Ministers to take a pay cut or resign etc?

hungryboy:
This is how the mind of a typical Buhari supporter works,
He tries to justify the evil and poor policies of the Dullard that has put us in this situation, by comparing what is happening in Nigeria with other oil producing, Leaving out major facts about those countries
In Saudi Arabia, healthcare and education is totally free for it Citizens,
Is it free in Nigeria?

So Poor Nigerians should bear the brunt of his inept policies while he spends 144million on just foodstuffs for himself next year,
Hasn't reduced or totally do away with his many allowances,
Hasn't told his cabinet Ministers to take a pay cut or resign etc?

be rational in your thought for once. Is Buhari responsible for the situation in Nigeria or is the situation an accumulation of bad policies of yesteryears? your hero GEJ accrued the highest revenue from oil sales during his 6 years rule. Please tell us what he did with the money? He shared it with his cronies and boasted that he made more millionaires than anybody. The truth is out now. He did not make any millionaires but millions of looters. There was a stampede on the CBNs vault to loot and pilfer. This was why he made the statement that srealing is not corruption. His wife is being investigated and assests has been siezed. Why not criticize those that have been caught instead of trying to carch air.

They burned thru all those trillions of dollars of oil revenue.


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