KUWAIT: In an effort to reduce the budget deficit, the Ministry of Finance began a series of meetings with various state departments to discuss the frameworks of implementing government instructions to reduce spending by 10 percent and increase non-oil revenues. The government aims to save around KD 2.3 billion in spending, in addition to increasing the fees of some services presented by some departments.
Informed sources said the finance ministry asked the state departments to present their views on increasing fees, starting with fees that can be increased through decisions that do not need laws and legislations. They said the Cabinet asked all departments to coordinate with the finance ministry to execute requests of reducing spending, while the finance ministry will inform the government about agencies that are complying, Al-Qabas Arabic daily reported yesterday, quoting the sources.
Meanwhile, the sources who spoke on the condition of anonymity did not exclude the possibility of failures in austerity measures due to the difficulty in implementing some procedures to reduce spending, especially since ministries and government agencies are committed to contracts with private sector companies to implement many services including security, office staff, cleaning, hospitality and others, which may expose some departments to large fines in case signed contracts are violated, adding that it is possible to reduce expenses according to the tenders law by 25 percent only.