He ordered a 5,000-riyal ($1,333) bonus for soldiers fighting in Yemen and granted Saudis working for the state an extra 1,000 riyals a month as a " cost of living " allowance for a year. Two-thirds of Saudi employees work in the public sector.Discontent wasn't limited to average Saudis. The payments will "nearly negate 2018's planned fiscal consolidation" barring an unexpected increase in oil prices, he said. "The move is definitely positive for 2018 GDP growth outlook but clearly at the expense of fiscal discipline," he said. "It also confirms worries that authorities will use any fiscal room created by rising oil prices to defer fiscal reforms."

Source: Economic Times January 07, 2018 09:11 UTC