Kuwait projects $183bn cumulative deficit over five years

Kuwait projects $183bn cumulative deficit over five years

Kuwait's government projects a cumulative budget deficit of KD55.4bn ($183bn) in the five fiscal years ending on March 31, 2025, Finance Minister Khalifa Hamada said in a statement.

Total expenses during that period are projected at KD114.1bn, with 71 per cent, or KD81bn, allocated to salaries and subsidies, the minister said. Issuing bonds and withdrawing cash from the country's sovereign wealth fund aren't solutions to reform and are merely temporary measures to finance the deficit, Hamada said.

The minister also said:

The country must address its liquidity problem as soon as possible, while implementing reforms to cut spending and boost non-oil income.

Statement comes in response to a draft bill the government submitted to parliament that would allow withdrawals from the Future Generations Fund.