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‘Need to develop plan for quick rescue of economy’
KUWAIT CITY, Sept 27: The actual fiscal deficit in Kuwait’s budget is currently about KD 1 billion per month, reports Al-Anba daily quoting a high-ranking government source. He called for the need to develop a plan for the quick rescue of the economy in order to address the imbalances in the State’s general budget and put an end to squandering.
The source stated that the liquidity in the Public Reserve Fund is on the verge of running out within the next two months. He expressed his regret at the outcome of the financial situation in Kuwait, especially with the nonadoption of the public debt law and reform of the country’s subsidy system and economic legislation.
The source said, “The current oil prices, which revolve around $40 per barrel, put the budget in a monthly dilemma in terms of how this huge deficit can be covered in light of the stability of the expenditure at KD 20 billion while the revenues do not exceed KD 7 billion. The conditions are not good, and difficult economic decisions should be taken urgently by increasing non-oil revenues, and reducing the size of the budget by at least by KD 5-6 billion. It is necessary to reform the public sector and direct citizens to work in the private sector.
Is it reasonable to see that the number of citizens working in the public sector is ten times more than the number of workers in the private sector? The government must be frank with the citizens. The citizen’s income must be affected by reforming the subsidy system, directing it to those who deserve it, and launching the process of imposing taxes.” The source indicated that Kuwait has a good opportunity to get out of the current economic problem due to the decrease in population numbers and owing to the huge financial reserves in the Future Generations Reserve Fund which were being collected for over a period of 50 years