Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Kuwait ends diesel subsidies over deficit fears  Join our daily free Newsletter

MENAFN - AFP - 10/06/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - AFP) The Kuwaiti government has decided in principle to end subsidies on diesel fuel but will deal with any negative impacts on consumers before implementing the decision, the cabinet said.

Last month, the OPEC member's government warned that spending outpaced revenues and this could lead to a budget deficit in 2017/2018 after years of surpluses.

"The council of ministers has decided in principle to stop subsidies on diesel," a statement said late Monday.

But the cabinet is waiting for a study by the higher planning council on ways to deal with possible negative effects on consumers.

Oil Minister Ali al-Omair told parliament three weeks ago that ending subsidies on diesel would save around 1 billion (735 million euros) a year out of total subsidies of around 18 billion.

Diesel is currently sold at around 0.20 a litre.

The step is one of several recommendations by a government committee formed last October to review subsidies on all services and commodities after costs have skyrocketed.

Finance Minister Anas al-Saleh told parliament th average annual growth in public spending was 20.4 percent during the past decade against a 16.2 percent for revenues.

The ministry has urged major cuts in subsidies, saying it was impossible for the state to sustain growth in wages and continue them.

Between 2005 and 2013 subsidies rose more than fourfold, from 4.1 billion to 18 billion, an annual growth rate of 23 percent, the ministry said.

Oil income rose from 45.9 billion in 2005 to 106 billion last year.

The minister has said that, if oil prices remain at around 100 a barrel, Kuwait will post an estimated budget deficit of 2.3 billion in the 2017/2018 fiscal year.

Last month, the International Monetary Fund warned Kuwait to contain a rapid rise in public wages and subsidies to safeguard the economy against oil price shocks.

The Gulf state is also revising subsidies on electricity, water and petrol, currently sold at well below cost.

Kuwait has boasted a budget surplus in each of the past 14 fiscal years, helping to increase its sovereign wealth fund to over 500 billion, local media said.


 


AFP




  MENA News Headlines
 May 29 2016 - Key Discovery in Thyroid Cancer Made by Saudi Researchers at King Faisal Specialist Hospital and Research Centre (KFSHRC)Saudi Press Agency
(MENAFN - Saudi Press Agency) Riyadh, Sha'ban 22, 1437, May 29, 2016, SPA -- Key Discovery in Thyroid Cancer has been made by Saudi Researchers at King Faisal Specialist Hospital and Research Centre ...

 May 29 2016 - Saudi- Killer of Security Man Executed in TaifSaudi Press Agency
(MENAFN - Saudi Press Agency) Taif, Sha'ban 22, 1437, May 29, 2016, SPA -- The Interior Ministry issued a statement today on the execution of a criminal in the city of Taif, saying that Fahd bin ...

 May 29 2016 - Saudi- Tropical Storm Bonnie soaks South CarolinaSaudi Press Agency
(MENAFN - Saudi Press Agency) CHARLESTON, Sha'ban 22, 1437, May 29, 2016, SPA -- Heavy rains from Tropical Storm Bonnie soaked the coast of South Carolina ruining the start of Memorial Day weekend. ...

 May 29 2016 - Anti-Narcotics Director General receives a Malaysian delegationSaudi Press Agency
(MENAFN - Saudi Press Agency) Riyadh, 22 Sha'ban,1437 AH, 29 May,2016 , SPA -- Director General of Narcotics Control Directorate Ahmed bin Saadi Al-Zahrani has received here the President of the ...

 May 29 2016 - Custodian of the Two Holy Mosques Receives British Foreign SecretarySaudi Press Agency
(MENAFN - Saudi Press Agency) Jeddah, Sha'ban 22, 1437, May 29, 2016, SPA -- The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud received at Al-Salam palace here today United ...

 May 29 2016 - Saudi- Muslim World League Secretary General Chairs Sessions in Muslim youth in the face of terrorism Conference in FranceSaudi Press Agency
(MENAFN - Saudi Press Agency) Strasbourg, Sha'ban 22, 1437, May 29, 2016, SPA -- The Secretary General of Muslim World League (MWL) Dr. Abdullah bin Abdulmohsin Al-Turki chaired today the 3rd and ...

 May 29 2016 - Qatar- Arab League Council Reiterates Support of Constitutional Legitimacy in YemenQatar News Agency
(MENAFN - Qatar News Agency) Cairo, May 28 (QNA) - The Arab League Council at the level of foreign ministers reiterated its continued support for the constitutional legitimacy in Yemen, led by ...

 May 29 2016 - Qatar- Arab Foreign Ministers Approve Nouakchott Summit AgendaQatar News Agency
(MENAFN - Qatar News Agency) Cairo,May 28 (QNA) - The Arab League Council at its extraordinary session has approved the agenda of the 27th Arab Summit, due to be held in the Mauritanian capital, ...

 May 29 2016 - Qatar- Yemeni Negotiators Nearing Principles of Peaceful SolutionQatar News Agency
(MENAFN - Qatar News Agency) Kuwait, May 29 (QNA) - UN Secretary General's Special Envoy for Yemen Ismail Ould Cheikh Ahmed said Saturday that the negotiating teams of the three main stakeholders in ...

 May 29 2016 - Qatar- Larijani Elected as Speaker of Iran's New ParliamentQatar News Agency
(MENAFN - Qatar News Agency) Tehran, May 29 (QNA) - Lawmakers have voted Ali Larijani as the speaker of Iran's new parliament following February elections. Larijani won the post on Sunday with 173 ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help