The head of the Finance and Economic Committee in the Kuwaiti parliament, Safaa Al-Hashem, revealed that the government requested the parliament to allow it to borrow 20 billion dinars (65 billion dollars) over thirty years, including eight billion to finance the current budget deficit, confirming the opposition of the government's desire to borrow from abroad to finance the budget deficit "where government borrowing does not receive parliamentary or popular approval," stressing that "income diversification is a necessity."
The government announced that transferring some assets from the general reserve fund to the future generations reserve is one of the proposed solutions that it may resort to finance the public budget deficit.
Kuwait is suffering in the current fiscal year from a severe crisis in financing its financial deficit, which may be exacerbated by the large drop in oil prices and the additional financial costs incurred by the government due to the Corona crisis. As a result of the continuous withdrawal from the general reserve fund which represents the closest sanctuary to the government, a large part of its liquidity has been drained, as Kuwait currently deducts by law at least 10% of its revenues annually in favor of the future generations reserve, which is managed by the General Investment Authority.
Source (Al-Arabiya.net website, Edited)
