First female concert in Saudi: Balqees steals the show

May 11: Saudi Arabia will triple its value-added tax rate and suspend a cost of living allowance for state workers, it said on Monday, seeking to shield finances hit by low oil prices and a slump in demand for its lifeline export worsened by the new coronavirus.

Historic oil output cuts agreed by Riyadh and other major producers have given only limited support to prices after they sank on oversupply caused by a war for petroleum market share between the kingdom and its fellow oil titan Russia.

Saudi Arabia, the world's largest oil exporter, is also being hit hard by measures to fight the new coronavirus, which are likely to curb the pace and scale of economic reforms launched by Crown Prince Mohammed bin Salman.

"The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1," Finance Minister Mohammed al-Jadaan said in a statement reported by the state news agency. "These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible."

The austerity measures come after the kingdom posted a $9 billion budget deficit in the first quarter.

The minister said non-oil revenues were affected by the suspension and decline in economic activity, while spending had risen due to unplanned strains on the healthcare sector and the initiatives taken to support the economy.

"All these challenges have cut state revenues, pressured public finances to a level that is hard to deal with going forward without affecting the overall economy in the medium to long term, which requires more spending cuts and measures to support non-oil revenues stability," he added.

The government has cancelled and put on hold some operating and capital expenditures for some government agencies, and cut allocations for some reform initiatives and projects worth a total 100 billion riyals ($26.6 billion), the statement said.

Central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while oil revenues in the first three months of the year fell 24% from a year earlier to $34 billion, pulling total revenues down 22%.

"The reforms are positive from a fiscal side as greater adjustment is essential. However, the tripling of VAT is unlikely to help that much in 2020 revenue wise with the expected fall in consumption," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

She said she kept unchanged her deficit forecast of 16.3% of GDP for this year, which already factors in a greater than previously announced spending cut.

About 1.5 million Saudis are employed in the government sector, according to official figures released in December.

In 2018, Saudi Arabia's King Salman ordered a monthly payment of 1,000 riyals ($267) to every state employee to compensate them for the rising living costs after the government hiked domestic gas prices and introduced value-added tax.

DIFFICULT TIMES

A committee has been formed to study all financial benefits paid to public sector employees and contractors, and will submit recommendations within 30 days, the statement said.

In late 2015, when oil prices fell from record highs, the kingdom slashed lavish bonuses, overtime payments and other benefits once considered routine perks in the public sector.

In a country without elections and with political legitimacy resting partly on distribution of oil revenue, the ability of citizens to adapt to such reforms is crucial for stability.

"Tripling the VAT will test the limits of the balance between revenues and consumption as the economy dives into a deep recession. The move will impact consumption and could also lower the expected revenues," said John Sfakianakis, a Gulf expert at the University of Cambridge.

"These are pro-austerity and pro-revenue moves rather than pro-growth ones," he said.

Hasnain Malik, head of equity strategy at Tellimer, said the VAT rise could bring about $24-$26.5 billion in additional non-oil fiscal revenue. The rise would hit consumer spending further but was a needed step towards fiscal sustainability, he said.

Mumbai, Jun 15: Actor Sushant Singh Rajput's death has reignited the discussions around the struggle of survival in Bollywood, with many insiders highlighting "cruel and unforgiving" nature of the industry, particularly tough on outsiders.

Rajput was found hanging in his Bandra apartment on Sunday.

According to a police official, Mumbai Police found out during the probe that the 34-year-old actor was under medication for depression.

An engineering student, Rajput left his course at the Delhi Technological University in the early 2000s and rose from a background dancer to a TV star with soap opera Pavitra Rishta, which gave the "outsider" his breakout show in 2009.

In 2013, he made his Bollywood debut with Kai Po Che! and went on to star in films such as Shuddh Desi Romance, Raabta, Kedarnath, Sonchiriya and Chhichhore.

But his most prominent role came as cricketer Mahendra Singh Dhoni's in the 2007 biopic, MS Dhoni: The Untold Story.

In a telling tweet, veteran actor Dharmendra wrote despite not knowing Rajput personally, his death served as a reminder that the industry could be "cruel".

"Pyaare Sushant, naa film dekhi na kabhi mila tum se... par tere achaanak chale jaane se bada sadma laga. This beautiful beloved 'show business" is very cruel. I can imagine your unbearable pain. I share the pain of your loving family and friends," Dharmendra wrote.

Actor Meera Chopra penned a powerful, poignant note about the loneliness one feels working in an industry, which is "cold and ruthless".

"We all knew well that Sushant was going through depression since long, but what did we do? Where was his close circle, the directors and producers he's worked with, his close friends? Why nobody came out and helped, gave him the kind of love, the work that he wanted - because nobody cares," she wrote on Twitter.

The Section 375 actor, who has been vocal about feeling suffocated by the constant judgement from the industry colleagues, said nobody in Bollywood cares about what one's going through and artistes are just a flop away from being alienated.

Chopra said the industry has "failed" Rajput and Bollywood will now never be the same.

"True, Bollywood is a small family, but a kind of family which is never there when you need them. He had to take his life for that family to realise the kind of pain and need he was in. An outsider will always feel like an outsider here.

"I just want to say to my industry that help people when they need it, and you know when they need it. There is no point tweeting when they are no more. Don't pretend to be sad when you guys didn't do anything when he was sad. Stop being such a hypocritical society," she added.

Gulshan Devaiah said, as an actor, one could understand why Rajput would've taken the step to end his life.

"As actors, somewhere deep down inside, we think we know why he did it and that’s why it so disturbing even if you didn’t know him at all. It’s a hard game to play and he played it very well but the game won in the end," Devaiah wrote.

Quoting Chopra's tweet, the Mard Ko Dard Nahi Hota star dismissed the idea of Bollywood being a family.

"If one thinks it’s a family, there is the problem. Bollywood is an imaginary name for a place of work, that’s it. I am really not trying to put anybody down here and sorry if it seems," he wrote.

On Sunday, actor-producer Nikhil Dwivedi posted a strongly-worded tweet calling out the "hypocrisy" of the industry after people from the film fraternity wrote they regretted not staying in touch with the "Chhichhore" star.

"High and mighty announcing they should have kept in touch with Sushant. Come on, you didn't! And that's because his career dipped. So STFU! Are you in touch with Imran Khan, Abhay Deol and others? No! But you were, when they were doing well," Dwivedi said.

Similar sentiment was echoed by filmmaker Anubhav Sinha, who, without taking names, said the "Bollywood Privilege Club" must sit down and think hard.

"Now don't ask me to elaborate any further," he tweeted.

Addressing outsiders, filmmaker Hansal Mehta wrote a long thread about the two ends of an artiste's time in the industry - the glorious successes and the crushing lows.

"There are many young 'outsiders' in this industry. Remember this - there is an establishment that will make you feel like the next big thing until they need you. They will drop you and mock you as soon as you falter. Do not fall for the trap. The ones that celebrate you will celebrate your downfall some time later," he tweeted.

Mehta said it's important for those who don't come from a film family to not force themselves to fit in.

"Just be authentic, follow your heart and stop seeking acceptance from anybody. Your connection should be with your art, your craft and with your audience. Nothing else matters. Over the years you will succeed, you will stumble.

"But remember that nothing is more important than you. Look after yourself. And know that you matter. The world is much bigger and wiser than what you perceive. So are opportunities. If you stay they will be yours. Lots of love. Never lose heart," the filmmaker wrote.

Celebrity hairstylist-turned-director Sapna Bhavnani claimed that Rajput's battle with mental health was out in the open and yet the industry chose to look the other way.

"It’s no secret Sushant was going through very tough times for the last few years. No one in the industry stood up for him nor did they lend a helping hand. To tweet today is the biggest display of how shallow the industry really is. No one here is your friend," she wrote on Twitter.