KUWAIT CITY, Oct 16: Public sector salaries and government subsidies for basic commodities have increased by 540 percent over the last 10 years, reports Al-Qabas daily quoting sources.

Disclosing a budget of KD 11.5 billion was allotted for both purposes for fiscal 2010/2011, sources said the budget for the salaries of public sector workers, including the military personnel, totaled KD 7.5 billion for this fiscal year, while the subsidies reached KD 4.5 billion.  Sources explained this means $50 is deducted from the price of each barrel of oil produced and sold by Kuwait.

Despite the approval of the development plan, sources pointed out the budget for salaries is seven times higher than that of investments in projects. Spending on projects, maintenance and consumption is equal to only 14 percent of the expenditures on salaries and subsidies. The budget for salaries is expected to increase by a billion dinars for fiscal 2011/2012 if the government approves the new pay scales for the workers who went on strike recently, sources added.