JEDDAH — Saudi Arabia is embarking on austerity measures due to the economic fallout of the coronavirus pandemic and drop in oil prices, according to a prominent economic analyst. Mazen Al-Sudairy said that Saudi Arabia has approved a major rationalization process with a reduction in capital spending from SR240 billion to SR143 billion and it may be subject to further reduction, in light of the continuing coronavirus crisis. Attending the Liwan program of Rotana Khalijia channel, Al-Sudairy said that the problem with the Saudi budget is that part of it is not flexible, and it is difficult to cut it. The budgetary allocations for salaries in the Kingdom amounted to SR504 billion, which necessitates that the price of a barrel of oil be $55 if the oil revenue goes to the payment of salaries only. Al-Sudairy stressed that the Kingdom is keen on the welfare of citizens by ensuring that none of the Saudi employees are laid off in the difficult economic situation. In this perspective, a reduction may occur in some of the allowances but not in their basic salaries. The economist said that the Kingdom is keen on maintaining the cohesion of society by ensuring the Saudi workforce is unaffected by the crisis. It is also keen on raising the level of education and maintaining the proportion of the middle class in society by bringing down the number of poor people in the society. Al-Sudairy said that the employees are ultimately consumers and therefore their salaries will not be affected, and what could likely be deleted from the budget could be allocations for insignificant projects and spending such as travel allowance.