Saudi economic measures painful: King Salman

Saudi King Salman bin Abdulaziz Al Saud has acknowledged that some of the economic measures adopted by the government in response to low oil prices are “painful,” stressing, however, that the policies are needed to avert more complicated financial woes.

King Salman made the remarks in an address to the Consultative Assembly of Saudi Arabia, also known as the Shura Council, on Wednesday.

“The state has sought to deal with these changes… through a variety of measures to restructure the economy, some of which may be painful in the short run but ultimately aim to protect the economy of your country from worse problems,” he said.

The finances of Saudi Arabia, the world’s second largest crude producer and largest oil exporter, are in tatters due to a downturn in oil prices and rising military expenditure, a large amount of which is being funneled into a military campaign against Yemen, where thousands of people have been killed and many more injured. 

The kingdom had a record budget deficit of almost $100 billion last year, prompting it to rein in public spending in a bid to save money.