Kuwait: Kuwait government stated that it aims to downsize state institutions budgets by 25 per cent and rationalise electricity and water subsidies.
The government unveiled a plan to reduce state expenditure by 25 per cent to redress the enormous budget deficit caused by the sharp decline in oil prices, state-run KUNA news agency reported.
The plan was discussed in a special meeting held on Sunday by the National Assembly's Financial and Economic Affairs Committee and attended by several cabinet ministers to study plans for dealing with the economic situation.
In a press statement following the meeting, which was headed by the National Assembly Speaker Marzouq Ali AlGhanim, the Committee Chairman MP Faisal AlShaya said that the meeting also tackled plans to rationalise subsidies for basic services and commodities as well as to increase revenues through privatisation of some projects and expanding publicprivate sectors' partnership projects.
It expected that the rationalisation of electricity and water subsidies would help save KD1.2 billion. AlShaya revealed that that lawmakers have proposed issuing fuel coupons for nationals to get 220 litres of rationalised fuel per month, and to lift the fuel subsidies totally.
He, however, noted that no decision was made in meeting as the committee and the government would convene on next Thursday to agree on the main outlines of the economic reforms before moving to the details of each proposal.