The Economic Affairs Committee in the Council of Ministers warned about serious structural imbalances in public finance and exacerbation of the liquidity crisis with the depletion of the General Reserve Fund, reports Al-Rai daily quoting sources. Sources said the committee estimated the budget deficit in the next five years to range between KD45 to KD 55 billion. Sources disclosed the concerned team is finalizing the national program for economic and financial sustainability, in cooperation with the Ministry of Finance, for submission to the committee.
This economic program extends for four years — from 2021 to 2025. It redefines the government’s role in the economy and presents solutions to the deficit. The employment policy in the public sector is not sustainable and that there are significant imbalances in the labor market, considering more than four out of five Kuwaitis working in government offices. The program aims to control spending and increase non-oil revenues; and in the medium to long term, to support economic diversification, improve the business environment, stimulate private sector growth, and develop the labor market. The program is being developed and revised according to data changes, stressing the development of the labor market by attracting foreign investment and supporting entrepreneurs and the industry sector.
SOURCE ; ARAB TIMES