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KUWAIT CITY, June 20: International reports commented on the total expenditures allocated by Kuwait in the 2023/2024 budget for salaries and subsidies, highlighting that salaries take up approximately 57 percent of the budget at a value of USD 48 billion, while subsidies accounted for 23 percent of the budget at a value of USD 19.3 billion. On the other hand, investments fell to USD 8.1 billion or 8.1 percent from their level in the previous year, reports Al-Nahar daily. According to informed sources, reconsidering subsidies during the current period will be difficult in light of the level of global inflation and its repercussions on citizens. Protecting citizens socially is a government priority.
The apparent imbalance in the budget for subsidies and salaries, which constitutes about 80 percent of the total budget for 2023/2024, compared to only 8.1 percent for capital spending, requires a reconsideration of the composition of spending components and moving forward with the completion of long-awaited development projects and solving the problems that they are faced with. In a related context, reports issued by international institutions revealed serious financial risks that cast a shadow over the global economy.
The World Bank report lowered its expectations for global economic growth in 2024 from 2.7 percent to 2.4 percent, and also reduced growth expectations in 2023 to 2.1 percent compared to its previous expectations of 3.1 percent. The reduction in growth is due to the risks of financial stresses in the emerging markets, which are intensifying in light of the rise in global interest rates. The World Bank’s warnings come in light of the overlapping shocks that the global economy witnessed due to the COVID- 19 pandemic, the Russian-Ukrainian crisis, and the sharp slowdown in light of the tightening of global financial conditions, which led to a long setback in development efforts.
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