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FINANCIAL NEWS
Saudi’s financial reforms to remain on track
29 May 2017
(MENAFN) The current restoration of allowances and bonuses for public workers along with the payments linked to the Household Allowance Program will start in H2 of the year to apply pressure on KSA’s fiscal balances.
Accordingly, the impact of the restoration of allowances and bonuses for public workers, which would add USD15bn to the wage bill, will be compensated by lower spending on infrastructure.
Moreover, the shift to gradual fiscal adjustment will ensure sustainability, while fiscal deficit will narrow to 10.5 percent of GDP this year and 5 percent by 2020.
Meanwhile, it is projected that one-third of the financial financing need to be met by tapping official reserves and the rest from external and local bank borrowing.
MENAFN2905201700450000ID1095519758
MENAFN2905201700450000ID1095519758
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