Kuwait City: Oil price hike will not change Kuwait’s public spending cuts policy and measures, report says. The new government is expected to be in place next week. According to the report released by financial agency Fitch Solutions, even if the cabinet changes, the basic policy will not change. Parliament will continue to block economic reforms.
The report points out that even if the parliament is dissolved and new members come in following elections, there will be no reduction in the power of the parliament. The current high petroleum prices are the result of the Russia-Ukraine war and the government’s assessment is that it will not continue.
Ministries have been instructed not to organize public events (ceremonies) unnecessarily and to cut down on print and publication costs. The authorities are trying to end eight years of budget deficit by cutting public expenditure and increasing revenue. Conferences and public events are being cut and costs are being sought. Public programs will be supervised by the Ministry of Finance. Costs and benefits will be compared. A review of public programs is conducted every three months.
Kuwait has been the venue for many international conferences and functions in the past. It has been deliberately reduced in recent years.
