• The cut is worth less than 5 percent of the 2020 budget
• It will be in areas that have the least social and economic impact

Arab News

RIYADH: Saudi Arabia is to cut SAR50 billion ($13.32 billion) from this year’s budget in light of the negative impact of the coronavirus pandemic on public finances in the Kingdom.

The cut is worth less than 5 percent of the 2020 budget and will be in areas that have the least social and economic impact, Finance Minister Mohammed Al-Jadaan said on Wednesday.

“The government took measures to curb the impact of the oil price drop and will take additional measures to deal with the expected price decrease,” he said.

The finance minister said the Kingdom has huge financial reserves and assets that will enable it to deal with the challenges resulting from the coronavirus outbreak and maintain sustainability and stability in the medium and long run.

Al-Jadaan also said 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.”