Official data issued by the Kuwaiti Ministry of Finance showed that the current fiscal year budget deficit exceeded $ 40 billion, amid warnings of the government's inability to pay the salaries of workers in public institutions during the next two months.
According to the Finance Ministry, the government’s liquidity shortage crisis during the current fiscal year, especially in light of the worsening budget deficit and the continued withdrawal of the reserve fund that is about to run out, left only $ 3.6 billion in the reserve fund. The ministry indicated that without borrowing during the coming period, the government will not be able to fulfill its obligations, especially in light of the increase in spending on measures to confront the outbreak of the Corona virus.
The report revealed the intention of the Kuwaiti Cabinet to submit the Public Debt Law again to the National Assembly (Parliament), during the coming period. The Public Debt Law, which the government submitted during the previous parliamentary session, and faced widespread parliamentary opposition, provides for borrowing approximately $ 65 billion over a period of 30 years.
The financial crisis that Kuwait is witnessing during the current period has been greatly exacerbated by the delay in economic reforms in light of the exacerbation of the budget deficit due to business stoppage and closure, as well as the decline in financial revenues due to lower oil prices.
Source (Al-Araby Al-Jadeed Newspaper, Edited)
