Saudi Arabia makes first public sector pay cuts read more at here www.spinonews.com/index.php/item/1030-saudi-arabia-makes-first-public-sector-pay-cuts

Saudi Arabia has reduced pays for government employees for the first time, as it attempts to further in spending at a time of low oil prices.

Contract that once existed between ordinary Saudis and the ruling elite - in which citizens could all but expect a none-too-stressful job for life in return for accepting the status quo - has long been eroding

 Crown Prince Mohammed bin Salman unveiled a reform plan intended to reduce the government's spending and lessen its dependence on oil revenue.

Even wealthy Saudi Arabia is under pressure from tumbling oil prices, and has announced a series of economic reforms

72% of revenues come from oil

$98bn the budget deficit in 2015              

80% increase in petrol prices last year in the country

$2.5tn size of state-owned oil giant Aramco

$2tn potential value of the sovereign wealth fund the Saudis are creating

A royal decree said ministers' salaries would be reduced by 20%, and housing and car allowances for members of the advisory Shura Council cut by 15%.

Lower-ranking civil servants will see wage increases suspended, and overtime payments and annual leave capped.

About two-thirds of working Saudis are employed in the public sector.

Their salaries and allowances accounted for almost half of government spending in 2015, or about $120bn (£93bn), and contributed to a budget deficit of $98bn.

The "Vision 2030" initiative aims to cut the public sector payroll to 40% of the budget by the start of the next decade and boost private sector employment.

The government also cut the generous subsidies for petrol and utilities in December, but complaints prompted Prince Mohammed to sack the water and electricity minister six months later.

Some Saudis have already taken to social media to lament what they remember as better days under King Abdullah, who died last year