Nine procedures to reduce effects of falling oil prices- Study
(MENAFN- Kuwait News Agency (KUNA)) KUWAIT Jan 5 (KUNA) -- Kuwait can apply nine procedures that will reduce the negative impact of lower oil prices on Kuwaiti economy according to a specialized study.The study which was carried out by The Industrial Bank of Kuwait and published by Kuwaiti Arabic-language daily newspaper "Al-Qabas" on Tuesday said that the procedures include reforming the government's expenditure reforming the tax system and improving the efficiency of government spending on state's projects as well as salary and wage adjustments.The study added that the fifth procedure is to reform the subsidy system then focus on the labor market reforms and reduce the dependence on oil as well as supporting the industrial sector in Kuwait as well as creating the right incentives to develop the role of the private sector.The study called for improving the efficiency of the capital expenditure to boost stronger growth in non-oil economy besides diversification of the state income.The study expected that the increase in the price of fuel will positively affect the long-term economic growth in Kuwait and will create more opportunities for investment in the private sector.The Industrial Bank's study said that the impact of the declines in government revenues in Kuwait is less compared to other GCC countries because Kuwait uses a flexible exchange rate denominated in a basket of other currencies which reduce the negative impact of lower oil prices on the budget. (end) smr.haq
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