RIYADH: Kuwait’s record $35.5bn budget deficit will result in government spending cuts of at least 10 per cent there, and could see private sector workers earning 3,000 KWD ($9,976) lose their national employment subsidies as the government looks into ways to ration its spending.
Spending on Kuwaitis having medical treatment abroad could also be rationed, Kuwait press agency Kuna reported, citing a cabinet statement.
The cuts mean its Civil Service Office will also review bonuses and incentives earned by senior government officials.
The Kuwaiti cabinet added that they would seek to cut spending on local and international events and conferences, as well as travel for overseas training and foreign missions.
The government plans to increase the efficiency of the collection of debts owed to it, and the General Authority for Industry will review rents charged for State buildings and land, the cabinet said.
Earlier this month, Kuwait posted a record $35.5bn budget deficit, caused by a drop in oil prices and reduced revenues and economic activity due to the Covid pandemic.
