* What is the reason for the suspension of allowances, and why they were returned?
- If we note, in the decision to stop allowances that it was temporary, and that in the same resolution there is a text that states that the decisions are reviewed periodically. And they were reviewed appropriately after the improvement of our oil revenues. This is a factor, and as you know in the program "financial balance" we had three scenarios for Oil which are: the pessimistic scenario S 45, the average scenario or a baseline of S 50, and the optimistic scenario of S$ 55. This is not the Kingdom's assessment for oil, but this is to arrange our securities with different oil prices. In the first quarter, we were close to the optimistic scenario which is $ 55, sometimes we go beyond it and sometimes we are less than, this is a positive element. The other positive element is that our non-oil revenues in the first quarter of 2017 have achieved more than we anticipate to achieve. This is another positive element, so the decision is no longer has to continue in this manner. So that, it was reviewed as stated in the resolution itself, while we exaggerate that this is a very great success for the competent authorities in the financial and the economic and investment sides as they were able to take us from this stage in less than 8 months. The work of a very great effort has been done in the oil agreement with the OPEC countries and non-OPEC countries is an agreement for the first time in history. We have always known in the past that the agreements were held between the OPEC countries only, and this is the first time in the history that the agreement held between the OPEC countries and countries outside OPEC. That made our position is very positive in terms of the governmental revenues of the oil. Also, the procedures taken in these non-oil revenues have greatly helped in addition to the investments and restructuring of many of the sectors under the Public Investment Fund have contributed to bringing in these revenues which have strengthened our position and contributed to a decision like this.
* The amounts of allowances, were they so impressive that they stopped?
- When we notice the price of oil is S$ 27 and continue for months under $ 40, we do not know what is the obvious scenario for the next three or four years, and we do not know if our effort in the oil agreement will succeed or will not work. Also, do not know if our programs in our non-oil revenues will succeed or not, we also do not know if that our investments will come to fruition in a short period of time or we cannot make a profit to help the government budget in a short period. So that, we can take “the risk” at the expense of the national economy. These procedures have been done in the past, in the eighties and in 1997. But the difference between this period and the past periods is that we took a period of few months to went back to the normal position while in previous cases in our history and the history of other countries take years to return to normal course.
* | mean the size of the amounts Was it affect the support?
- without doubt. If you want to close all the taps that you have, you must take all measures until make sure that your affairs are in a good position, and then re-open it as appropriate.
* How do you respond to some Western press, which said that this decision came under popular pressure, and this is considered a decline?
- That is incorrect words, the deficit fell in the first quarter to 44%, this in itself proves the truth of our words that the deficit falls below what we expect, so why continue the austerity measures.
* What are the most important steps that achieved compensation in the budget deficit?
1- Oil revenues are the most important factor, and the main reason for the oil agreement.
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