A document issued by the General Investment Authority showed that Kuwait's public budget deficit during the fiscal year 2020/2021 increased to 14 billion dinars (46 billion dollars), in light of the economy suffering from the outbreak of the Coronavirus and weak oil prices. It is worth noting that previous estimates before the Corona crisis and the drop in oil prices expected the deficit to reach 7.7 billion dinars, as Kuwait's fiscal year begins on the first of April and ends on March 31st.
According to the document, the current cost of borrowing from local or international banks with an expected interest rate of between 2.5 and 3 percent will be cheaper than the cost of withdrawing or borrowing from the Future Generations Fund or liquidating assets.
The document revealed that the General Reserve Fund amounted to five billion dinars at the beginning of the current fiscal year, and that it decreased by four billion dinars within 100 days. The government is currently seeking to obtain parliamentary approval for a law that allows it to borrow 20 billion dinars over 30 years. The bill, which was rejected by the Parliament's Financial and Economic Committee, was included on the Council's agenda.
Source (Al-Araby Al-Jadeed Newspaper, Edited)
