Kuwait tells ministries to limit public spending as budget deficit swells

Govt to consider measures to improve sovereign credit rating over next four years

  
Close-up of Kuwaiti bank notes (toned). Image used for illustrative purpose.

Close-up of Kuwaiti bank notes (toned). Image used for illustrative purpose.

Getty Images

Kuwait's cabinet has told all government departments to limit spending to at least 10 percent as it looks to address the country's budget deficit.

The measures also call to limit spending on local and international functions and exhibitions, travel expenses pertaining to overseas training, foreign missions and medical treatment for nationals, state news agency KUNA said Tuesday.

Earlier this month, Kuwait's finance ministry said budget deficit increased nearly 175 percent in the 2020-21 year to 10.8 billion dinars ($35.5 billion) while noting that it was the highest deficit in the country's fiscal history.

This week’s cabinet session also agreed to reconsider the list of prices for state property rents, land and buildings, and on ways to ensure collection of government debts.

The government will look at ways to stop disbursement of national labor support to workers in the private sector whose total salary reaches 3,000 dinars or more.

The cabinet also discussed a Central Bank of Kuwait (CBK) report and a briefing by the General Secretariat of the Supreme Council for Planning and Development, on measures to improve the country's sovereign credit rating over the next four years.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here

© ZAWYA 2021

More From GCC