Low and middle-income Saudi households will begin benefitting from a new government allowance scheme, which will be announced on Tuesday.

The additional funds are meant to curb the effects and strains of the kingdom's economic reforms on less fortunate families, a source explained, according to media reports.

As Riyadh has instituted major economic reforms, increasing fuel prices and reduced subsidies have taken their toll on many Saudi households' disposable income. Last December, Saudi leaders said they planned to implement an allowance system to address the problem.

Previously, the government said Saudis would be paid in cash and the allowances would be based on a family's income level. Only those in the low-income bracket would be fully reimbursed for the additional expenses and reduced subsidies, according to Gulf News.

The allowance scheme was delayed due to logistical and planning difficulties, according to sources with knowledge of the matter.

Initial estimates suggest the plan will cost the kingdom between 20 and 25 billion riyals ($5.33 - $6.66 billion) in its first year. By 2020, the cost is expected to rise between 60 to 70 billion riyals.