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Merging Agencies Could Slash Government Spending by 50%

publish time

30/09/2024

publish time

30/09/2024

Merging Agencies Could Slash Government Spending by 50%

KUWAIT CITY, Sept 30: A study carried out by the Ministry of Finance on 39 government entities revealed that the estimated expenditures for these entities could be reduced by up to 50 percent through the merger or abolition of government agencies, authorities, and institutions with overlapping functions. The newspaper obtained a copy of the study, which was referred to the Council of Ministers; indicating the merger or abolition will reduce government spending by 20 percent in the near term, and by 50 percent in the medium and long terms, as a result of the elimination of middle and leadership positions and bonuses. A decrease of 25 percent is also expected through the merger of contracts like cleaning, security, messengers, and others. The study also showed a 30 percent reduction in the amount spent on official missions.

According to the study, the merger will not only help the public sector grow, but it will also lay the groundwork and regulations for any future government institution creation; preventing the public sector from growing too large and avoiding organizational overlap and duplication. Additionally, it will speed up the process of digital transformation and increase the productivity and efficiency of institutions. The study looked at the rationale behind the consolidation or dissolution of certain government organizations. It was verified that since its founding, the Competition Protection Authority has only generated three percent of the projected income.

The research findings indicate that after the merger, several new authorities and institutions were established. These include the Central Agency for Information Technology, the Public Authority for Communications and Information Technology, the National Center for Cybersecurity, and the Communications Sector at the Ministry of Communication.

The study revealed the following proposals:
- Establishment of the Public Authority for Food Security after merging the Public Authority for Agriculture and Fish Resources (PAAAFR) and the Public Authority for Food and Nutrition (PAFN),
- Abolish the Public Authority for Roads and Transportation (PART) and merge it with the Ministry of Public Works,
- Merge Kuwait News Agency (KUNA) with the Ministry of Information,
- Merge the Public Authority for Housing Welfare (PAHW) and Kuwait Credit Bank (KCB) to become the Housing Finance and Welfare Authority to solve the housing issue,
- Abolish the Supreme Council for Planning and Development due to the existence of the Secretariat General for Planning and Development,
- Merge Kuwait Direct Investment Promotion Authority (KDIPA), Public-Private Partnership Authority, Privatization Authority, and Small Projects Fund to attract local and foreign capital,
- Merge the Public Authority for Civil Information and the Central Statistics Bureau to unify official statistics in the country,
- Put the Expropriation Department and Financial Controllers Authority under the management of the Ministry of Finance,
- Merge the Youth Authority, Sports Authority, and Kuwait Anti-Doping Agency due to the similarity in work,
- Merge the Financial Investigations Unit and the National Bureau for Human Rights to be under the Ministry of Justice,
- Transform the Kuwait Institute for Scientific Research (KISR) and the Capital Markets Authority (CMA) as affiliated bodies instead of being independent entities,
- Merge or abolish the Ministry of Awqaf, the Public Authority for Printing and Publishing the Holy Quran, and the Secretariat General of Awqaf,
- Separate the judiciary from the Ministry of Justice and become an independent body called the Judicial Authority.

The study explained that the procedures for merging the entities will contribute to reducing expenses and stopping the inflation of the State’s administrative structure.

By Mohammad Ghanem and Mohammad Al-Musleh
Al-Seyassah/Arab Times Staff