Provides about one billion dollars a year
Kuwait raises subsidies on diesel among fears budget deficit
The Kuwaiti Government has decided to increase subsidies on diesel in principle material tight at the same time it would deal with any negative effects to the consumer before proceeding with the application. The Kuwaiti Cabinet warned last month that the growth of expenditure exceeded income growth, will lead to a deficit in the State budget starting in 2017-2018, after years of record surpluses. According to the ' French ', an official statement said that the Cabinet decided to raise the diesel principle support, saying he is awaiting the results of a study conducted by the Supreme Council of planning about ways of dealing with negative consequences for the consumer. Ali al-omair Kuwaiti oil Minister to Parliament three weeks ago said that the lifting of subsidies on diesel will save about $ 1 billion a year out of the $ 18 billion spent by Kuwait to support, currently sold diesel-$ 0.20 per litre. The move comes under the recommendation of several recommendations made by the Committee in October last year to review Government support to services and goods after prices rose dramatically.
Anas Alsaleh Kuwaiti Finance Minister said for Parliament the Central growth spending reached 20.4 per cent annually over the past 10 years compared with revenue growth of 16.2 percent, adding that between 2005 and 2013, total rose more than fourfold from $ 4.1 billion to $ 18 billion, representing a growth of 23 percent annually, according to the Ministry of finance. Income rose from $ 45.9 billion in 2005 to $ 106 billion last year, Kuwaiti Finance Minister believes that if oil prices remain at around $ 100 a barrel, Kuwait will record budget deficit of 2.3 billion dollars in the fiscal year 2017-2018.