Saudi Arabia canceled bonus payments for state employees and cut ministers’ salaries by 20%, its latest steps to rein in a budget deficit that ballooned amid the oil price slump.
The government also curbed allowances for state employees and pared salaries of members of the Shura Council, which advises the monarchy, by 15%, the official Saudi Press Agency reported. It cited a statement after the weekly cabinet meeting and royal decrees.
Under Deputy Crown Prince Mohammed bin Salman, the world’s biggest oil exporter is seeking to tame a budget shortfall that expanded to 16% of gross domestic product last year, the highest among the world’s 20 biggest economies. The government has delayed payments owed to contractors and started cutting fuel subsidies as it tries to manage lower oil prices, Bloomberg reports.
