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Kuwait's Electricity & Water Ministry records huge deficit of KD3.573b

publish time

04/09/2025

publish time

04/09/2025

Kuwait's Electricity & Water Ministry records huge deficit of KD3.573b

KUWAIT CITY, Sept 4: The final accounts of the State Financial Administration for fiscal 2023/2024 showed that the Ministry of Electricity, Water and Renewable Energy recorded a deficit of about KD3.573 billion due to the large gap between expenditures, which amounted to KD4.057 billion, and revenues of KD483.6 million. According to the report, the ‘Goods and Services’ item accounted for the biggest share of expenditures, amounting to KD2.9 billion, most of which is for the purchase of oil and lubricants needed to operate power and water distillation plants, while employee compensation amounted to KD740 million, including salaries, bonuses, and allowances. Non-current assets amounted to KD414.2 million, as expenditures for projects implemented by the ministry. The newspaper raised the issue for discussion to find appropriate solutions to curb the annual billion-dollar deficit directed at electricity and water subsidies and improve the quality of services, achieving profitability or a break-even point between expenditures and revenues.

In an exclusive statement, economic expert Hajjaj Bukhadour revealed he considers transforming the ministry into a public institution and involving the private sector in the provision of electricity and water services, a step that will balance expenditures and revenues and achieve profitability. Bukhadour pointed out that this move will make the State treasury save around KD2.5 billion annually -- the value of government support currently directed towards electricity and water production. He explained that the success of the experiment hinges on the model, which will be adopted in Kuwait, as it ensures the achievement of key objectives, foremost of which are improving services, reducing costs, and generating more job opportunities for nationals. He warned against repeating the negative aspects of some service models, which previously failed to achieve their goals. He underscored the importance of privatization not only for the purpose of empowering the private sector, but also for the benefit of citizens who have become accustomed to consuming large quantities of energy without paying the true cost, as a result of building patterns that consume many times the actual electricity requirement. He emphasized the need for the Secretariat General for Planning and Development to carefully study the issue to ensure the desired goals are achieved.

By Mohammad Ghanem
Al-Seyassah/Arab Times Staff