Will it get away with it this time? Kuwait passes excessively high budget, projects deficit

Published July 4th, 2014 - 02:28 GMT
The spending figure of 23.21 billion dinars is 10.5 percent higher than estimates in the past fiscal year of 21 billion dinars.
The spending figure of 23.21 billion dinars is 10.5 percent higher than estimates in the past fiscal year of 21 billion dinars.

Kuwait's parliament on Thursday passed a record $82.6 billion budget for 2014/2015 fiscal year, projecting a $11.2 billion shortfall on the basis of a conservative oil price.

The spending figure of 23.21 billion dinars is 10.5 percent higher than estimates in the past fiscal year of 21 billion dinars.

Revenues are estimated at 20.07 billion dinars ($71.4 billion), up almost 11 percent on last year's projections.

Forty-nine MPs voted in favour of the budget while two members rejected it.

It passed despite strong criticism from many MPs over increases in spending, particularly on wages and subsidies.

During the debate, Finance Minister Anas al-Saleh said public spending had increased six-fold during the past 13 years.x

Wages for civil servants are projected at 5.6 billion dinars while subsidies mainly on power generation are estimated at 5.9 billion dinars, according to a budget report issued by parliament.

The head of parliament's budgets committee, MP Adnan Abdulsamad, said capital investment accounts for just 10 percent of the latest budget.


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