The Kuwaiti cabinet has instructed all government departments to cut spending by at least 10 percent from the current fiscal year’s budget, it stated in a released statement on Monday, according to Reuters.
According to the statement, the Cabinet made the decision after considering suggestions from the economic affairs committee citing a lack of liquidity in the general reserve and “the need to find radical solutions to confront the deficit in the state’s general budget”, the released statement read.
The Cabinet also decided to review the list of pricing for state property rents, land, and buildings, as well as improve the efficiency with which government debts are collected.
It will also request that the Public Authority for Manpower to investigate the potential of halting the payment of national labor support to private-sector workers whose total salary exceeds 3,000 dinars.
The finance minister also addressed the Cabinet on immediate steps and proposals in the budget for the fiscal year 2021/2022 to reduce spending and increase non-oil revenue.
It also agreed to form a committee to oversee the sovereign credit rating, directed by the finance ministry and comprised of the central bank, the General Investment Authority, and the Supreme Council for Planning and Development’s General Secretariat.