Saudi Arabia has already been forced to tighten its belt. Now it's preparing for four more years of austerity.
Slammed by lower oil revenues, the kingdom's budget deficit swelled to 366 billion riyals ($98 billion) in 2015, and 297 billion riyals this year. It was forced to borrow money from international investors for the first time ever, raising $17.5 billion in October.
In response, the government has already slashed energy subsidies and cut wages for officials. But in a new report -- the Fiscal Balance Program 2020, published over the weekend -- it warns of dire consequences if it doesn't press ahead with more dramatic measures.
Powered by SmartAsset.com
“The government would find itself in a place of needing to cut capital spending by at least 90%, cut government operational spending by at least 30%, cut government wage bill by at least 30%, and substantially cut government retirement benefits,” it said, if no further action were taken. - CNN
0 comments: