Saudi's new King Announces Bonus

February 20, 2015 18:06
Saudi's new King Announces Bonus

Saudi Arabia's new King Salman bin Abdulaziz Al Saud has announced a huge bonus of USD 32 billions to the citizens. This huge money is more than the annual budget of Nigeria, which is the Africa's largest economy. The bonuses worth two months of salary will be granted to all government employees, soldiers, pensioners and students on government stipends at home and abroad. Also to the professional associations, literary and sports clubs. This is big surprise from the Saudi King who was recently crowned following the death of predecessor. The bonus will have its impact on the sales in the country as analysts predict 30 percent jump in the market.

However, the bonus announced by the new King could make the government run a record deficit of USD 44.5 billion for the year 2015 and the new spending could increase the deficit further to USD 67.2 billion which means 9 percent of gross domestic product [GDP]. The deficit can attribute to fall in international crude oil prices. Already the revenues are down by nearly 20 per cent, however, the King or the government is not in panic mode.

The last time, the Saudi population received a bonus was in 2011 when the late King Abdullah returned from medical treatment in abroad. The Saudi population was overjoyed the announcement and took it social media in thanking the King and the government.

- TVR

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Saudi Arabia King Salman