Kuwait announces KD16 bln subsidy for the next three years

KUWAIT 30th December 2015 (WAM) -- The Under-Secretary of Kuwait's Finance Ministry Khalifa Hamada said on Wednesday that the expected financial subsidy by the state for citizens is projected at KD 16 billion over the next three if the subsidy system remains unchanged.

According to the Kuwaiti News Agency Khalifa added in an interview with Al-Qabas Arabic-language daily that the continuation of the subsidy system will contribute to increasing expenditure which will lead to an imminent budget deficit.

He said that the government plan to rationalise subsidies will contribute to saving KD 2.6 billion in three years which shows the importance of the plan at a time when the budget is witnessing a large deficit because of falling oil prices.

He pointed out that the rationalisation process will ensure the sustainability of development in Kuwait and give the state the ability to continue to provide essential services to its citizens such as education health security justice and other services that are indispensable.