Home GCC Kuwait Kuwait asks ministries to cut spending by 10% amid budget gap The OPEC member posted record $36bn budget deficit in 2020 by Bloomberg August 18, 2021 Kuwait’s cabinet instructed state entities to reduce spending by at least 10 per cent in an attempt to cut its budget deficit, state-run Kuwait News Agency reported. The OPEC member posted record KD10.8bn ($36bn) budget deficit in 2020, up 175 per cent from a year earlier. It has been battling to reduce the gap due to its dependence on oil revenues, and high spending on civil servant wages and subsidies. The measures include: Limiting spending on local and international events and exhibitions and travel expenses Cutting spending on overseas training, foreign missions and medical treatment for nationals Taking steps to ensure debts due to the state are collected Revision of incentives to top state officials and rents for state-owned real estate Assessment and possible halting of financial incentives to nationals employed in the private sector whose wages exceed KD3,000 Establishing a sovereign credit rating governance committee Last month, Kuwait was downgraded by S&P Global Ratings for a second time in less than two years. The rating agency said the downgrade reflects “the persistent lack of a comprehensive funding strategy despite the central government’s ongoing sizable deficits.” Tags expenses funding Kuwait spending Subsidies Travel 0 Comments You might also like The future of travel: IATA passenger survey reveals key trends Travel to US to get easier for UAE citizens: here’s why Air Arabia Abu Dhabi introduces home check-in service Paymob secures $22m extension to Series B funding, raises $72m in total