Saudi King Salman ordered monthly payment of 1000 riyals ($267) to state employees over the next year to help them balance the rising cost of living after the introduction of VAT.
The payment of 5000 riyals was also announced to military personnel serving at the front lines with Yemen. The allowances for students, retirees and social security recipients have also been boosted.
The new payment orders were an acknowledgment of “the increased burdens for some segments of the population following from the necessary measures which the state took to restructure the economy,” according to the decree.
King Salman has asked the state to bear the VAT in certain situations, such as special health and education services as well as the first purchase of a house that is valued at up to 850,000 riyals ($226,660).
The decree did not reveal the total cost of the new allowances, but it appeared to be considerably smaller than some past handouts by Saudi kings, and therefore unlikely to have much impact on economic growth or the state budget deficit.