Tuesday , September 26 2023

Kuwait follows UAE footsteps – Bid to cut dependence on oil

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KUWAIT CITY, Feb 4: Government of Kuwait is following the same steps taken by the United Arab Emirates in adopting serious measures to reduce dependence on oil, which is the main source of income for the State of Kuwait, reports Al-Nahar daily quoting informed sources. They said the Ministers Council has demanded all governmental bodies particularly Ministry of Finance and Ministry of Planning and Development Affairs to present a plan based on realistic steps to reduce dependence on oil by 25 to 40 percent by the year 2021.

The sources explained that the government is seeking support from the National Assembly for steps to reduce subsidization and expenses. The government will offi cially request this from the National Assembly during the February 9th session. Even though this new step by the government deserves appreciation, several economists indicated that such a vision could face many operational diffi culties because the government will have to revamp the economy completely before executing the step, a matter that raised a huge concern in the Cabinet. The economist also affi rmed the importance of taking major steps for revamping the economy and varying it such as allocation of all governmental sectors based on a studied privatization plan, allowing complete open trade, eradicating monopolization, eliminating wastage of public funds and combating corruption. However, this issue is occurring at a time when a fi nancial defi cit of KD6 billion is expected in the current budget.

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