Saudi Arabia cuts 2020 budget expenditure by 5% to tackle coronavirus, lower oil prices

The Saudi government approved to partially cut the 2020 budget expenditure by nearly SAR 50 billion, or less than 5% in areas that have the least social and economic impact, state-owned SPA reported, citing Mohammed Al-Jadaan, Saudi Minister of Economy and Planning.

The move came as part of the measures adopted by the government to curb the impact of lower oil prices amid the current economic and global conditions on the spread of the novel coronavirus (COVID-19).

The Kingdom will take additional measures to deal with expected price decrease, the minister added.

Saudi Arabia took preliminary measures to provide the financial resources required for direct and preventive measures to contain the spread of coronavirus and ensure sustainability of government operations.

The Saudi government will also provide the required additional allocations, along with the necessary health services to control COVID-19, Al-Jadaan noted.

Saudi Arabia has a solid financial position, thanks to its huge government assets and reserves that will help it overcome challenges and alleviate the impact on the target financial sustainability and economic stability in the medium and long term.

Al-Jadaan concluded that given the potential impacts of the coronavirus outbreak, developments will be reassessed, items of expenditures will be reviewed and appropriate decisions will be made in a timely manner.