Latest News
- Court Sentences Bank Employee To 5 Years For Embezzling 100,000...
- Fake ‘Sheikh’ Sentenced To 2-yr As Court Overturns Verdict
- Justice Ministry New Service On The Sahel App
- Ministry Probes 68 Cases Of Illegal Charity, Funds Collection
- Globally, Kuwait Is Among The Top Consumers Of Incense And Oud O...
- Decrease Seen In Foreign Investment
- Kuwait Customs Seized 2 Containers Laden With Tobacco At Shuwaik...
- Unpaid Salaries, Accountant Beaten Up By Workers
- The Sahel App Was Not Hacked, A Spokesman Claims
- Four Expats Arrested For Stealing Copper Cables Worth 60,000 Din...
- Indian National Died In Abdalli Car Accident
- Work Permits And Foreign Worker Transfers Are Amended By PAM
Imf Urges Further Kuwait Subsidy Reforms To Fight Back Budget Gap
Kuwait must enact further subsidy reforms to trim its budget deficit resulting from low oil prices despite political sensitivity, the International Monetary Fund has said. Posting its first budget shortfall of $15 billion last fiscal year following 16 years of surpluses, OPEC member Kuwait has adopted a series of austerity measures raising the prices of fuel, power and water.
The country liberalised diesel and kerosene prices last year and recently hiked the cost of petrol, causing a political crisis that led to Parliament being dissolved and calls for a snap election. But even with these measures, Kuwait will need a massive KD 35 billion ($116 billion) to finance its deficit over the next six years, the IMF said in a report released late Tuesday. In spite of the government reform measures, Kuwait’s “fiscal and external accounts have deteriorated markedly,” it said.
“Further subsidy reform is critical.” The report encouraged “the authorities to move ahead with their plans to further rationalise energy subsidies,” estimated at close to $7 billion in last year’s budget. It also called for controls on the wage bill and for raising non-oil revenues. Earlier this year, Cabinet approved a comprehensive plan aimed at subsidy reforms, economic diversification and controlling the wage bill, which accounts for almost half of public spending.
But the plan was fiercely opposed by the previous Parliament and also by a majority of candidates running in polls slated for Nov 26. According to local media, the government plans to end subsidies by 2020.
To meet budget financing needs, Kuwait has drawn down billions of dollars from its $600-billion sovereign fund. It has also resorted to borrowing and plans to issue domestic and foreign bonds worth $16.6 billion. Kuwait is projecting a deficit of $29 billion this fi scal year.
SOURCE : ARABTIMES
Trending News
-
Eid Al Fitr 2024: Crescent Moon Not Sighted In Sau...
08 April 2024
-
Kuwait Implements Home Biometrics Services Ahead O...
14 April 2024
-
When Will Eid Al Fitr 2024 Take Place In Qatar, Ba...
08 April 2024
-
On Sunday, The Meteorological Department Warns Of...
07 April 2024
-
Kuwait Airways Provides Update On Flight Schedule...
14 April 2024
-
Kuwait Airways Introduces Convenient Home Luggage...
15 April 2024
-
Gathering For Eid Al-Fitr Prayers: Kuwaiti Citizen...
10 April 2024
-
Winners Of Kuwait National Assembly 2024 Elections
06 April 2024
-
An Egyptian Expat Dies At Kuwait's Airport
11 April 2024
-
Bay Zero Water Park Kuwait: Summer Season Opens Ei...
11 April 2024
Comments Post Comment