(MENAFN- Arab Times) Kuwait may cut its planned state spending next fiscal year as lower oil prices pressure its finances, a parliamentary official quoted preliminary estimates as saying on Sunday. Adnan Abdulsamad, head of the parliamentary committee for budgets, said in a document obtained by Reuters that Ministry of Finance officials were estimating budget spending at 19 billion dinars ($65.2 billion) in the year starting next April.
Planned spending for the current fiscal year is 23.2 billion dinars, according to the document. Abdulsamad said the estimates for the 2015/16 year envisaged the government running a budget deficit of 2.8 billion dinars, before deducting money for Kuwait's Future Generations Fund (FGF), part of its sovereign wealth fund.
The FGF invests outside Kuwait. Contributions to the FGF would be cut back to 10 percent of revenues next fiscal year from 25 percent at present, the document said.
The 2015/16 estimates assume an average oil price of $60 per barrel and Kuwaiti oil production of 2.7 million barrels per day, down from a price of $75 and production of 2.9 million bpd in the current fiscal year, Abdulsamad said. Kuwait's budget plans are only rough guides to actual spending and revenues because of fluctuations in oil prices and the fact that the government often underspends its targets.
For example, the government posted a huge surplus of 12.9 billion dinars last fiscal year as it spent only 18.9 billion dinars, well below the 21.0 billion dinars originally planned.
MP Mohammed Tana has presented a proposal to allow all civilian employees in the government and private sectors to cash a part of their annual vacation leave days.
Tana explained the rationale behind the proposal, asserting that it is in line with principles applied in the work setting and it will reduce the number of staff going for a long vacation which is detrimental to the work procedures.
On the other hand, Chairman of the Budget and Final Accounts Committee MP Adnan Abdul-Samad said there is no intention to exclude gasoline and electricity subsidies from the new budget. This came after the committee discussed the general State budget for fiscal 2015/2016 with the finance ministry's representative. Abdul-Samad revealed the price of oil in the new budget is $60 per barrel and the projected deficit without deducting the future generations fund is KD2.8 billion.
He said the new budget will be KD19 billion with a decrease of KD 4.2 billion, adding that oil production is estimated at 2.7 million barrels per day, while the current daily production is 2.9 million barrels. He explained the estimated total public expenditures was based on the average in the last three years, which was KD19 billion, compared to general expenses estimated at KD23.2 billion in the 2014/2015 budget with decrease of KD4.2 billion.
Meanwhile, the Legislative and Legal Affairs Committee in the Parliament on Sunday approved the Pilgrimage Bill which regulates procedures for Hajj and Umra. It also stipulates the formation of a higher committee to look into violations committed by Hajj and Umrah caravan operators, as well as to protect the owners of these caravans and the pilgrims. On another issue, Committee Rapporteur MP Abdul Hameed Dashti disclosed that they rejected the request of the Public Prosecution to lift the immunity of MP Nabil Al-Fadel.
He added the committee also discussed the Family Court Bill which is ready for voting in its next meeting. He said the bill includes stipulations on litigation procedures, privacy cases, and specialization wherein there should be prosecution and specialized courts. He disclose the bill states the need to resolve conflicts before resorting to the court and ensure quick implementation of provisions and decisions of the Office for Family Affairs. He affirmed the panel will vote on the bill next week.
Furthermore, the Public Utilities Committee approved the proposal to relocate the water pumps in Jabriya and Khaitan, away from the residential areas. Committee Rapporteur MP Saud Al-Huraiji told reporters that they also discussed with the Interior Ministry's representatives the proposed establishment of the Public Authority for Crisis and Disaster Management.
During the meeting, an agreement was reached to return the bill to the concerned committee for further study in response to the request of the panel. In a related development, the National Assembly's Financial and Economic Affairs Committee discussed here on Sunday with Minister of Social Affairs and Minister of State for Planning and Development Hind Al-Sabeeh and representatives of State Audit Bureau the Development Plan for the fiscal years 2015-2016/2019-2020.
They also considered obstacles that the previous plan faced and the ways of avoiding them in the next one, Faisal Al- Shaya, the committee's chairman, said in a statement to reporters following the meeting, adding that the Supreme Council for Planning and Development (SCPD) formed a committee on this matter.
A large number of projects were not carried out in the previous development plan, he regretted, noting that the meeting consequently focused on the most important schemes. He pointed out that there is a plan for personnel training and cutting development projects to 600 instead of 1,200, indicating the previous plan included insignificant schemes. Al-Shaya noted that a timeframe would be set for implementing development projects, expecting some of these projects will be executed in January and February 2015.
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