Economics
King Scales Back Austerity Plan That Set Saudis Grumbling
- King also names new ambassador to U.S., land forces commander
- Bonuses were canceled to reduce spending after oil price fall
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Saudi Arabia’s King Salman restored bonuses and allowances for state employees, scaling back an austerity program that generated criticism among citizens accustomed to generous state handouts.
The government said the perks canceled in September were reinstated because higher-than-expected revenue helped to drive down the budget deficit. Minister of State Mohammed Alsheikh said in a statement to Bloomberg that the injection of more money was expected to stimulate economic growth, but others said the kingdom’s rulers were responding to the discontent the cutbacks created.