Kuwait public spending highest in the Gulf region based on GDP


According to a statistic prepared by the Central Bank of Kuwait, the country’s public spending is the highest in the Gulf region based on Gross Domestic Product (GDP), reports local daily.

The statistic was prepared in the form of a graph which was presented along with the government’s work agenda and then referred to the parliament. As per the statistic, “Kuwait’s spending rate is 56.4 percent of the GDP, which is very high compared to that of Oman (51.5 percent), Qatar (42.7 percent), Saudi Arabia (36.2 percent) and the United Arab Emirates (30 percent)”.

The statistic compared these figures with the international figures issued by the Eurostat — the statistical office of the European Union. It was discovered after comparison that Kuwait’s expenditure rate based on the GDP is higher than Europe’s average rate of 47 percent, the United States of America’s 32.5 percent, Japan’s 36.8 percent, Canada’s 40.8 percent and Britain’s 39.4 percent.

According to analysts, this rate of public spending refl ects the extent of governmental intervention in the national economy. It also indicates the ongoing spending and consumption inflation, which poses a burden on the national budget. The public spending in Kuwait reached more than KD 19 billion in the current fiscal year, with a large proportion being allocated for paying public employees’ salaries and other financial benefits.

However, the analysts and rating agencies affirm difficulty in control and rationalization “because there is a natural annual increase in the salary cap, as well as in the current spending of several ministries and authorities which are not adhering to the rationalization principle”. It is worth mentioning that Kuwait’s public spending rate based on the GDP increased after the sharp fall in the nominal GDP which was affected by the drop in oil prices.



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Cabinet welcomes Moody’s rating


The Kuwaiti cabinet on Monday welcomed the recent rating of Moody’s Investors’ Service which changed the outlook on Kuwait to stable from negative.

The cabinet said in a statement following its customary weekly meeting chaired by His Highness Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah that the fresh rating reflected the agency’s satisfaction with the Kuwaiti government’s commitment to the economic reform program.

The cabinet, in this context, reaffirmed keenness on promoting reform efforts and maintaining national economic sustainability.
 The cabinet also asked the Ministry of Public Works to coordinate with the Central Agency for Public Tenders and other concerned state bodies to take swift measures to speed up the implementation of the new terminal at Kuwait International Airport.

Afterwards, Minister of Educating and Higher Education Mohammad Al-Fares briefed the cabinet on the results of high school exams for this year.
 The ministers, in this regard, discussed preparations and arrangements by Kuwait University and Public Authority for Applied Education and Training, Ministry of Higher Education and other relevant bodies for receiving new students.

Afterwards, Minister of Social Affairs and Labor and Minister of State for Economic Affairs Hind Al-Sabeeh elaborated on the country’s strategic political, economic, social and environment development blueprints.

The cabinet, in the meantime, tasked the General Authority for Food and Nutrition with rapidly taking the necessary steps to conduct the lab tests on the local, and imported fresh vegetables and fruits, said the Minister of State for Cabinet Affairs and Acting Minister of Information Sheikh Mohammad Al-Abdullah Al-Mubarak Al-Sabah.

The authority will coordinate in this regard with the Ministry of Social Affairs and Labor, the Interior Ministry, the Health Ministry, the Kuwait Municipality, the Public Authority for Agriculture and Fish Resources (PAAF), the Kuwait General Administration of Customs and the other relevant bodies.

Then the cabinet reviewed the topics on the National Assembly agenda.
 Meanwhile, the ministers condemned the armed terrorist attack that recently targeted a bus in Upper Egypt’s Minya Governorate, leaving scores of the innocent people killed or wounded.

The cabinet offered condolences to President Abdul-Fattah Al-Sisi, the Egyptian Government and people, reiterating Kuwait’s unwavering rejection of all forms of terrorism targeting the country’s security and stability.
It also voiced support to all measures Egypt might take to counter such acts of terrorism that seek to incite sedition and hatred among the Egyptian people.

The ministers expressed confidence in the Egyptian people and their ability to demonstrate unity against whosoever seeks evil for them.
By the same token, the cabinet condemned the criminal terrorist attack in Manchester, UK, last week leaving many people killed or wounded.

It reaffirmed Kuwait’s firm stance rejecting such acts of terrorism that go contrary to all faiths and human values and norms, expressing condolences and sympathy to the British Government and the victims’ families, wishing the wounded a speedy recovery.

Source: KUNA


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