Report: Saudi cut in gov. allowances, bonuses to save 35.5 mln USD

Saudi Arabia could save 35.5 million U.S. dollars when some government allowances and bonuses are cut or stopped, local newspaper Al Riyadh reported on Thursday.

By implementing a recent government decision on the austerity measure, government spending will be brought down to 154.9 million dollars, from the original 190.4 million dollars, contributing to a 13.5 percent drop in government budget deficit, the report said.

The decision includes stopping the annual incremental increase of salaries of government employees for one year. The measure does not apply to military personnel participating in military and security operations outside the country, including those fighting in Yemen as part of a Saudi-led Arab coalition against Houthi rebels.

It is part of a series of cost-cutting measures taken by Saudi Arabia to cope with dwindling revenues as oil prices plummet on the international market.

Late last month, the cabinet also ordered a cut in the salaries of ministers and Shura members by 20 percent and 15 percent respectively. Endit