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‘Govt should not borrow to finance budget deficit’

KUWAIT CITY, Aug 8: The State Audit Bureau recommends that the government should not borrow for financing the budget deficit, and should instead opt for capital projects, provided it develops a longterm strategy to deal with the risk of increasing public debt, reports Al- Qabas daily.

In a report concerning high-risk aspects, the bureau stressed the need to calculate the real-estate assets of the government and comply with the law by disclosing the commissions when concluding any public debt contracts and conducting adequate technical studies before drafting any law on public debt.

It urged the government to take mandatory measures in selecting banks, companies and offices involved in the issuance of international bonds and the completion of the structure of public debt management function. The bureau highlighted the risk involved in not taking the public debt seriously as well as the accumulation of debt, depletion of the general reserves through interests to be paid and the lowering of credit rating.

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