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Tue 1 Mar 2016 01:59 PM

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Kuwait says planning 25% cut in state spending

Government plans to save up to $4bn by reducing subsidies and raising prices of petrol and electricity

Kuwait says planning 25% cut in state spending

Kuwait’s government has revealed plans to cut state expenditure by 25 percent in the state budget.

The plans were discussed in a meeting between the government and the National Assembly’s financial and economic affairs committee this week, though the parties did not agree on a final decision, according to the Kuwait Times.

The head of the committee, MP Faisal Al-Shaye, said the government expects to save up to $4 billion (KD 1.2 billion) by reducing subsidies and raising prices of petrol and electricity.

However, Al-Shaye said lawmakers have proposed excluding Kuwaitis from the price hikes and that a meeting will be held on Thursday to discuss the issue.

As part of the proposal, citizens with driving licences will be compensated through coupons based on a monthly consumption of 220 litres per citizen.

Al-Shaye said another meeting will be held on Thursday to discuss the issue.

Kuwait’s government revealed that the squandering in electricity consumption is estimated to be 30 percent. It said consumption categories have been proposed to cut wastage.

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waleed 4 years ago

As a Kuwaiti citizen, I think the price hike should be proposed on everyone. It is a minor minor adjustment to spending, especially considering Kuwaitis are well paid. Together we can get through the tough times and lower oil prices. Foreigners have moved to our country for various reasons, a lot of which have to do with a better yet cheaper standard of living, there is no reason they should be penalised.