Subsidies might have been a necessity in the early days of the country, but they have become a huge financial burden over the last 50 years. In this era of parliamentary chaos, they have become a form of bribery, not only through the slogan “Do not touch the citizen’s pocket”—a pretext for political and electoral gains—but also through haphazard hiring. This is why a third of the State budget goes to the first chapter (of the budget), a situation unique to Kuwait. Furthermore, the massive annual cost of subsidies, exceeding KD7 billion ($21 billion) — nearly a quarter of the KD24.5 billion budget — is a major contributor to the continuous financial deficit. A significant issue is the absence of any strategy to rationalize these subsidies, let alone eliminate them, although they no longer effectively serve the target population. This lack of vision also extends to the employment policy. While the Constitution mandates the State to employ its citizens, this obligation should not become a financial burden. This is particularly problematic given that a substantial portion of the government workforce relies on expatriate staff.
Official statistics underscore this inefficiency, showing that a government employee’s productivity is only 47 minutes, resulting in increased costs and wasted time for the State. Employment management must be reformed to prioritise and increase productivity. Therefore, it is essential to correct this inverted pyramid structure, broaden the scope of productivity, provide support to those in need, raise salaries and offer incentives to the private sector to employ citizens. To achieve this, well-conceived plans are necessary, offering incentives for companies and institutions, while providing training opportunities for young people in all sectors and professions. In contrast to Kuwait, citizens in many developed countries — often significantly wealthier — are employed in diverse fields. The government’s only expenditure in this context is the cost of facilities provided to support the private sector.
The national economy of Kuwait is increasingly burdened by an ill-conceived management style, which is a daily reality, not mere speculation. This approach, characterised by poor planning and reliance on impulsive decisions, creates growing obstacles. A major consequence of this haphazard management is the significant dependency of the population on the public sector -- about 85 per cent of 1.57 million citizens rely entirely on public sector salaries. This financial burden is compounded annually as the majority of new graduates enter the public job market. Moreover, the government’s current fiscal priorities exacerbate the annual budget deficit.
The deficit continues to worsen year after year by heavily subsidising essentials like food, electricity, water and fuel, while neglecting strategic spending, which is vital for the economy’s future. Therefore, it is vital that the government strategically utilises funds from subsidy cuts to increase public sector salaries and provide incentives for the private sector to hire young Kuwaitis. Anyone familiar with the economic vision of His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah will realise that current ministerial practices and rushed decisions are hindering progress toward income diversification, attracting high-quality investments, and cultivating an appealing business environment for local and foreign investments. The overarching goal is to transform Kuwait into a leading regional and international financial and commercial hub. This involves localising technology and expertise, generating employment for young citizens, and empowering the private sector to spearhead economic development. Consequently, ministerial initiatives must be aligned with the vision of the highest leadership to ensure the country becomes what His Highness the Amir aspires it to be
