Saudi Arabia Triples VAT, Cuts State Allowances

The video discusses Saudi Arabia's decision to cut spending and triple VAT to 15%, a move announced by Mohammed Al-Jadaan. Riad Hamade provides context, explaining that the government aims to reallocate spending towards healthcare and business support amid the COVID-19 pandemic and low oil prices. This decision is unusual as other governments are increasing spending to support their economies. The move may face criticism due to the economic strain caused by the pandemic and oil price fluctuations.

What major fiscal change did Mohammed Al-Jadaan announce for Saudi Arabia?

• An increase in VAT to 15%

• A freeze on VAT

• A decrease in government spending by 50%

• A reduction in VAT

What is the primary reason given by the Saudi government for the VAT increase?

• To increase government revenue

• To reallocate spending priorities

• To reduce national debt

• To boost tourism

Which sector is NOT mentioned as a focus for reallocation of funds?

• Healthcare

• Tourism

• Education

• Travel

What global economic conditions are affecting Saudi Arabia's budget decisions?

• Rising oil prices

• The COVID-19 pandemic and low oil prices

• A booming tourism industry

• Increased foreign investments

How might the Saudi government's economic measures be perceived by critics?

• As a universally praised action

• As a typical response

• As an unusual and potentially harmful decision

• As a necessary step