Kuwait's fuel and gas subsidies budget reduced to $787m

Figure is significantly lower than previous years, when oil prices were over $100 a barrel
Kuwait's fuel and gas subsidies budget reduced to $787m
By Staff writer
Mon 06 Jun 2016 01:38 PM

Kuwait has allocated a reduced figure of $787 million (KD 238 million) towards fuel and gas subsidies for 2016/2017, according to Head of the National Assembly’s budgets committee MP Adnan Abdulsamad.

The figure is significantly lower than that the "billions of dinars" of previous years, when oil prices were over $100 a barrel, reported Kuwait Times.

The decision is in line with reports that the government could increase petrol prices between 14 to 83 percent next month during the parliamentary summer break.

In 2015, Kuwait fully lifted subsidies on grades of fuel such as diesel and kerosene.

As for the new budget, it includes over $1 billion (KD 310 million) in ration card subsidies, $880 million (KD 266 million) in aid to ‘friendly and sisterly countries’, and $993 million (KD 300 million) in social aid to divorced women or those married to stateless people and others, according to Abdulsamad.

The budget also dedicates $413 million (KD 125 million) to patients receiving medical treatment abroad. The same figure was estimated at $993 million (KD 300 million) last year.

The government was asked to review the roles of semi-government and independent government bodies which use up over $15.2 billion (KD 4.6 billion) of state funding - the main source of the budget deficit valued at over $36.4 billion (KD 11 billion) in 2016, Abdulsamad said.

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.