Kuwait said to mull $70bn annual spending cap

Spending cap is being included in a proposed budget for the fiscal year that starts in April, says official
Kuwait said to mull $70bn annual spending cap
(YASSER ALZAYYAT/AFP/Getty Images)
By Bloomberg
Mon 02 Oct 2017 01:16 PM

Kuwaiti officials are discussing a plan to cap public spending at an average of KD21 billion ($69.5 billion) a year over the next three fiscal years to help the government plan future debt sales, according to a senior government official.

The spending cap is being included in a proposed budget for the fiscal year that starts in April, the official said on condition of anonymity because he isn’t authorized to discuss the plans.

Total expenditure for the current fiscal year is estimated to reach KD19.9 billion, the official said.

Finance Ministry officials didn’t immediately respond to requests for comment.

Oil-rich Kuwait raised $8 billion in March in its first sale of international bonds, joining other members of the Gulf Cooperation Council seeking to plug rising budget deficits after the slump in crude prices.

Parliament is also studying a government proposal for a new debt law that would allow for the sale of 30-year bonds for the first time. The draft raises the debt ceiling to 25 billion dinars from 10 billion dinars in the law that expired earlier this year.

Ministries and government departments have been instructed to submit a list of top spending priorities for the 2018-2019 budget, the official said. The government must submit the 2018-2019 budget to the parliament by January 31 for a vote.

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