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Minister of Finance: We aim to reduce the budget deficit by rationalizing spending, addressing waste, and diversifying sources of income

Minister of Finance and Minister of State for Economic Affairs and Investment, Dr. Anwar Al-Mudhaf, said that reducing the financial deficit in the state’s general budget is a government priority that will be achieved through rationalizing spending, addressing waste, and increasing and diversifying sources of income.

وزير المالية: نهدف لخفض العجز بالميزانية عبر ترشيد الإنفاق ومعالجة الهدر وتنويع مصادر الدخل

This came in a speech by the Minister of Finance during the first general budget forum held by the Ministry of Finance today, Sunday, to direct government agencies to implement the budget for the current fiscal year in accordance with the decisions, circulars, and rules for implementing the budget in order to achieve efficient spending, address areas of waste, and observe the observations of the regulatory authorities.


Minister Al-Mudhaf added that the expected non-oil revenues from the gross domestic product amount to 4 percent, indicating that the goal is to reach 10 percent non-oil revenues from the gross domestic product in 2030.


وزير المالية: نهدف لخفض العجز بالميزانية عبر ترشيد الإنفاق ومعالجة الهدر وتنويع مصادر الدخل

He explained, "Kuwait will achieve financial sustainability by rationalizing government spending to control budget growth by stabilizing government spending at 24.5 billion Kuwaiti dinars (about 80 billion US dollars), in addition to diversifying sources of income and doubling non-oil revenues to reach 4 billion dinars (about 13 billion). dollars) in the fiscal year (2027-2028).


He stated that this forum is a plan for cooperation with government agencies through four periods of the fiscal year, including a forum headed by the Minister of Finance to review the state’s financial situation and the cooperation required from government agencies, and the remaining periods are a quarterly forum headed by the Undersecretary of the Ministry of Finance and the presence of officials in the financial sectors to discuss the latest developments. He pointed out the decline in liquidity rates in the general reserve due to the continued increase in withdrawals from the general reserve fund balance, as the balance of the general reserve in the fiscal year (2023-2024) reached two billion dinars (about 6.5 billion dollars), compared to 33.6 billion dinars (about 109.8 billion dollars). ) in the fiscal year (2014-2015).


He stressed the need to control the financial deficit to ensure the sustainability of the state’s public finances in the future, as the cumulative deficit for the period between the fiscal year (2015-2016) to the fiscal year (2023-2024) amounted to more than 30 billion dinars (about 98 billion dollars), expecting the cumulative deficit to reach From the fiscal year (2025-2026) to (2028-2029), more than 26 billion dinars (about 84.9 billion dollars).


Regarding revenues for the current fiscal year, Al-Mudhaf expected them to reach 18.9 billion dinars (about 61.7 billion dollars), while in the fiscal year (2025-2026) they will reach 21.8 billion dinars (about 71.2 billion dollars), and in (2026-2027) they will reach 20.3 billion dinars (about $66.3 billion).


He stated that the state's expected revenues in the fiscal year (2027-2028) are estimated at about 20.4 billion dinars (about 66.6 billion dollars), and in the fiscal year (2028-2029) they will reach 20.3 billion dinars (about 66.3 billion dollars).


He stated that the state’s estimated expenditures in the current fiscal year amount to 24.5 billion dinars (about 80 billion dollars), while in the fiscal year (2025-2026) they will reach 26.1 billion dinars (about 85.3 billion dollars), compared to 26.8 billion dinars (about 87.6 billion dollars) in Fiscal year (2026-2027).


He stated that the expected expenditures in the budget for the fiscal year (2027-2028) are estimated at about 27.6 billion dinars (about 90.2 billion dollars), and in the fiscal year (2028-2029) they will reach 28.5 billion dinars (about 93.1 billion dollars).

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