Kuwaiti Emir warns of deficit after income decrease of 60%

Kuwaiti Emir Sabah Al-Ahmad Jaber Al-Sabah said yesterday that the state’s income had decreased by 60 per cent due to the decrease in oil prices, while general expenditure remained the same, AlKhaleej Online reported.

At the start of the new parliamentary term, Al-Sabah called for “urgent measures” to be taken for economic reforms, decreasing spending and fighting corruption.

“The global decrease in oil prices led to the decrease of the state’s income by 60 per cent, while our expenditure has remained the same without taking any measures to keep up with the decrease of oil prices,” he said, “this caused a deficit in the budget that deterred our ambitions.”

“It is important to accelerate serious and urgent measures aiming at economic reform based on rationalising public spending, fighting corruption and treating instabilities in the national economy.”

The Emir warned that the delay in carrying out these measures would “aggravate” the situation.

The Kuwaiti government approved austerity plans for the current year included decreasing spending by 17.8 per cent compared to last year. Kuwait saves 10 per cent of oil incomes for future generations.