Economics
Oil War, Virus Plight Force $13.3 Billion in Saudi Spending Cuts
A waiter wearing a protective face mask serves a family in Riyadh
Photographer: Fayez Nureldine/AFP via Getty Images
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Saudi Arabia announced 50 billion riyals ($13.3 billion) in budget spending cuts after the crash in oil prices and the coronavirus outbreak wreaked havoc on its public finances.
As the kingdom doubled down in its price war with Russia, authorities signed off on expenditure reductions equivalent to under 5% of the total outlays approved in this year’s budget, Finance Minister Mohammed al-Jadaan was cited as saying by state-run Saudi Press Agency. Only days ago, the central bank unveiled a 50 billion-riyal package to support private businesses hurt by the disease known as Covid-19.