The minister’s dire projection came as the house discussed a report from the finance and economic committee, which rejected draft legislation that would have allowed the government to issue bonds. Parliament on Wednesday decided to refer the debt law back to the finance panel so it can present a new report in two weeks, when the chamber will take a vote.
Kuwait’s budget deficit increased 69% to 5.64 billion dinars in the last fiscal year, and the government estimates it’ll more than double to 14 billion dinars in the current fiscal year, ending March 31, Al-Sheetan said. Wages and subsidies accounted for 76% of all spending. The International Monetary Fund expects the government’s financial needs to grow at a rapid rate as its liquidity position weakens.