Modi govt slams UN for opposing its decision to deport helpless Rohingyas

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.

Nagpur, Jan 28: A 19-year-old woman was allegedly raped and an iron rod was inserted in her private parts by a man in the Pardi area here, police said on Monday.

The gruesome incident took place on January 21 and the accused, Yogilal Rahangdale (52), was arrested from Gondia district, they said.

The accused was working as a supervisor in a spinning mill where the woman was employed as a labourer, the police said.

The woman, her brother, the accused and another girl lived in rented accommodations in Pardi.

Inspector Sunil Chavan of the Pardi police station said that the woman's brother and her female friend had gone to their village on January 21 for some work.

As the woman was alone at home, Rahangdale attempted to rape her in the night. When she resisted, he stuffed a piece of cloth in her mouth, he said.

When she fell unconscious, the accused raped her and inserted an iron rod in her private parts, Chavan said, quoting from the complaint filed by the victim.

She narrated the incident to her brother on January 24 and they subsequently lodged a complaint with the police.

An offence was registered against the accused at the Pardi police station.

New York, May 8: An Indian-American father and daughter, both doctors in New Jersey, have died due to the COVID-19, with Governor Phil Murphy describing their demise as “particularly tough" and hailed them for dedicating their lives for others.

Satyender Dev Khanna, 78, was a surgeon who served both on staff and as the head of the surgical departments for multiple hospitals across New Jersey for decades.

Priya Khanna, 43, was a double board-certified in both internal medicine and nephrology. She was Chief of Residents at Union Hospital, now part of RWJ Barnabas Health.

"Dr Satyender Dev Khanna and Dr Priya Khanna were father and daughter. They both dedicated their lives to helping others. This is a family dedicated to health and medicine. Our words cannot amply express our condolences," New Jersey Governor Murphy tweeted on Thursday.

“Both dedicated their lives to helping others and we lost both of them to COVID-19,” Murphy said during a press conference on Thursday, saying their demise is a "particularly tough one.”

Satyender passed away at the Clara Maass Medical Center where he had worked for more than 35 years.

Murphy described him as a "pioneering doctor” who was one of the first surgeons to perform laparoscopic surgery in the state. He is being remembered by colleagues as a “gentle and caring physician."

“And for a doctor, I'm not one, but I would bet, I don't think there could be a more fitting way to be remembered, or a nurse or a healthcare worker of any kind,” Murphy said, adding that the doctor had a passion for bicycling, and he often found peace from the hustle of the hospital in biking along the Jersey Shore.

Priya did all of her medical training in New Jersey and then did her fellowship in nephrology in South Jersey with the Cooper Health System. Like her father, she too worked at Clara Maass, where she died.

She was also Medical Director at two dialysis centres in Essex County and “took pride” in teaching the next generation of doctors, Murphy said, adding that the ICU physician who cared for Priya Khanna was trained and taught by her as well.

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“Priya will be remembered as a caring and selfless person who put others first. And even while in the hospital, fighting her own battle, she continued to check up on her mom and dad and her family,” Murphy said.

“This is a family, by the way, dedicated to health and medicine,” he said.

The governor spoke with Satyender's wife Komlish Khanna, who is a paediatrician. The couple has two more daughters - Sugandha Khanna, an emergency medicine physician and Anisha Khanna, a paediatrician.

“Unbelievable. Our words cannot amply express our condolences nor, I am sure, can they express the pain that the Khanna family is feeling. But I hope that the fact that our entire state mourns with them is some small comfort. And we mourn everyone we have lost. We commit in their memory to saving as many lives as we can,” Murphy said.