Subsidy decrease in draft budget – Many reasons cited

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KUWAIT CITY, June 28: The Minister of Finance and the State Minister for Economic and Investment Affairs Abdul Wahab Al-Rasheed attributed the reasons for the decrease in the subsidy component in the draft general budget for the 2022/2023 fiscal year to several reasons, most notably the reduction in support for construction materials allocated to the residential cities of Mutlaa and South Abdullah Al-Mubarak, estimated at an amount of KD 196 million and 95 thousand due to the decrease in the executive capacity of the Ministry of Commerce and Industry from 12,000 housing units to 5,000, reports Al-Rai daily.

In response to a parliamentary question submitted by MP Abdulaziz Al-Saqabi, Al- Rasheed attached the response of the Ministry of Finance, which included a statement containing the reasons for the decrease in the subsidy component in the draft general budget. He said, “The reason for the decrease in the subsidy component in the 2022/2023 fiscal year is the settlement of the custody account for previous years. It is related to the services of the Ministry of Health for citizens abroad at an amount of KD 216 million, in addition to the reduction in construction materials allocated to the residential cities of Mutlaa and South Abdullah Al-Mubarak”.

When asked whether he took into account the new changes in the global commodity markets, and considered the fact that the government pledged to bear the increase in the prices of subsidized commodities, the minister’s response stated that, “The new changes in the global commodity markets were taken into consideration, as the government bore the increase in the prices of subsidized commodities. For instance, the fodder subsidy was increased by KD 7 million, bringing the value of the fodder subsidy from KD 13 million to 20 million”.

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