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Kuwait Projects Huge Budget Deficit for Sixth Year in a Row

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JUMADA ALAWWAL 20, 1441 AH WEDNESDAY, JANUARY 15, 2020 28 Pages Max 19º Min 05º 150 Fils Established 1961 ISSUE NO: 18035 The First Daily in the Arabian Gulf www.kuwaittimes.net Kuwait marks 14th ’versary of More than 130 dead as severe New protests as Iran makes Pressure on Sainz as Peterhansel 4 Amir Sheikh Jaber’s passing 9 weather hits Pak, Afghanistan 24 first arrests over downed jet 26 edges Attiyah in Dakar stage 9 Kuwait projects huge budget deficit for sixth year in a row Govt to push for selective taxes • KD 16bn allocated for wages and subsidies By B Izzak and Nawara Fattahova Finance Minister Mariam Al-Aqeel said the allow the government to meet the budget budget deficit is due to low oil prices and deficit at the expense of citizens and want the KUWAIT: The Cabinet yesterday approved lower production due to Kuwait’s commit- government to stop squandering public funds the 2020/2021 budget projecting yet another ment to the OPEC+ cuts. The minister said first. The minister said over 71 percent or KD huge deficit for the sixth year in a row due to the government will likely draw from the state 16 billion is allocated for wages and subsidies, lower oil prices and production as Kuwait reserve fund to plug the deficit gap, because with the latter accounting for KD 4 billion - complies with the OPEC+ output cuts to the National Assembly has refused to half of it for fuel and power subsidies. The support prices. The deficit is projected to approve the public debt law. government also spends around KD 40 mil- reach KD 7.72 billion, even higher than the Aqeel said the government plans to push lion for employing Kuwaitis in the private current 2019/2020 fiscal year, although the for the approval of the debt law to allow the sector. government kept spending unchanged at KD government to borrow to meet the budget Aqeel said that oil revenues are estimated 22.5 billion. deficit, because borrowing is cheaper than at KD 12.9 billion calculated on the basis of The budget shortfall grows even higher to withdrawing from sovereign wealth funds. $55 a barrel. Oil prices currently hover reach KD 9.2 billion after the compulsory 10 The state has a sovereign wealth fund worth around $65 a barrel. She said that the percent deduction from revenues - KD 1.48 more than $600 billion, providing a cushion breakeven oil price required for Kuwait to billion this year - for the Future Generations for state finances. The minister said the gov- post no deficit is $81 a barrel and rises to $86 Fund. Revenues are estimated at KD 14.8 bil- ernment also wants another reform bill a barrel if the deduction from revenues is lion, some 6.0 percent lower than projections passed by the Assembly to allow the govern- counted. Although the government has kept a in the current year. Over 87 percent of rev- ment to impose selective taxes like other Gulf lid on spending, capital expenditures rose to enues come from oil, whose income is pro- Cooperation Council (GCC) states. 16 percent of total spending. The budget will jected at KD 12.9 billion, around 7.0 percent Kuwait has only increased the prices of become effective only after it is passed by the below this year’s estimates. fuel for all and electricity for expats in a bid Assembly, most likely in June. Revenue Kuwait earns from investments to cut the budget deficit, but has been unable “We expect an increase in oil production KUWAIT: Minister of Finance Mariam Al-Aqeel speaks during a press conference to through the sovereign wealth fund is not to impose other taxes due to strong opposi- after the OPEC decision ends, as it is announce the budget for the upcoming fiscal year yesterday. — Photo by Yasser Al-Zayyat included in the budget. tion from MPs, who insist that they will not Continued on Page 24 2 Local Wednesday, January 15, 2020 Kuwait Amir receives senior state officials, new governor His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah meets with Deputy Prime Minister, Minister of Interior and KUWAIT: His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah meets with His Highness the Crown Prince Minister of State for Cabinet Affairs Anas Al-Saleh, and the newly appointed Governor of Farwaniya Sheikh Meshaal Jaber Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah. — Amiri Diwan and KUNA photos Al-Abdullah Al-Sabah. KUWAIT: His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah received His Highness the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah at Bayan Palace yesterday. His Highness Sheikh Sabah also received National Assembly Speaker Marzouq Al-Ghanem. Moreover, His Highness received His Highness Sheikh Nasser Al- Mohammad Al-Ahmad Al-Sabah and His Highness the Prime Minister Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah. His Highness the Amir then received Chairman of Kuwait’s Supreme Judicial Council and the Cassation Court, and President of the Constitutional Court Justice Youssef Al- Mutawaa. His Highness Sheikh Sabah also received Deputy Prime Minister, Minister of Interior and Minister of State for Cabinet Affairs Anas Al-Saleh, who presented to His Highness the newly appointed Governor of Farwaniya Sheikh Meshaal Jaber Al-Abdullah Al-Sabah. Minister of Amiri Diwan Affairs Sheikh Ali Jarrah Al-Sabah attended the meeting. Separately, His Highness the Crown received yesterday at Bayan Palace Speaker Ghanem, His Highness Sheikh Nasser Al-Mohammad, His Highness Sheikh Sabah Al-Khaled, Justice Youssef Al-Mutawaa, as well as Deputy Prime Minister and Defense Minister Sheikh Ahmad Al-Mansour Al-Sabah, and Foreign Minister Sheikh Dr Ahmad Nasser His Highness the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah meets with Al-Mohammad Al-Sabah. Furthermore, His Highness Sheikh Deputy Prime Minister, Minister of Interior and Minister of State for Cabinet Affairs Nawaf received Anas Al-Saleh and the new Governor of His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah meets with National Anas Al-Saleh, and the newly appointed Governor of Farwaniya Sheikh Meshaal Jaber Farwaniya Sheikh Meshaal Jaber Al-Abdullah. — KUNA Assembly Speaker Marzouq Al-Ghanem. Al-Abdullah Al-Sabah. Kuwait’s security chief meets UK Ambassador KUWAIT: Kuwait’s National Security Bureau (NSB) Chief Sheikh Thamer Al-Ali Al-Sabah met yester- day with the United Kingdom’s Ambassador to Kuwait Michael Davenport and discussed with him issues of common interest. Both sides tackled means to bolster cooperation and bilateral ties in addition to issues of mutual interest. Regional and international developments were also discussed, NSB said in KUWAIT: National Security Bureau Chief Sheikh Thamer Al-Ali Al-Sabah meets with UK press statement. — KUNA Ambassador to Kuwait Michael Davenport. — KUNA Oil Minister holds talks with visiting Japanese official KUWAIT: Minister of Oil, Minister of Electricity and Water Dr Khaled Al-Fadhel holds talks with the Japanese State Minister of Economy, Trade and Industry Makihara Hideki. — KUNA KUWAIT: Minister of Oil, Minister of Electricity common interests, including the MoU signed in and Water Dr Khaled Al-Fadhel held talks yester- 2015 on future projects and cooperation and its day with the visiting Japanese State Minister of latest development. They also discussed coopera- Economy, Trade and Industry Makihara Hideki tion in the oil and gas fields and recent and future focusing on ties. The meeting also tackled issues of partnerships. — KUNA stimulate economic and social development in Kuwait extends Cameroon by means of revamping the road network in central and southern provinces, it said. The loan makes up roughly 19 percent of the pro- KD 5 million ject’s total costs estimated at KD 26 million ($88.4 million), according to the release. It is the eighth loan loan to Cameroon provided by the KFAED to Cameroon as it had offered seven loans valued at a total KD 33 million ($78 million), it said, adding that the duration of the KUWAIT: The Kuwait Fund for Arab Economic loan is 22 years with a grace of five years. Kuwait Development (KFAED) sealed a loan agreement worth Fund for Arab Economic Development (KFAED) is KD 5 million (around $17 million) to Cameroon yester- the first institution in the Middle East that took an day. KFAED’s Deputy Director-General Nedhal Al- active role in the international development efforts. Olayan and Cameroonian Minister of Economic The Kuwait Fund extends Loans on concessionary Alamine Ousmane Mey signed the agreement. The term to finance development projects in the develop- deal was signed in the Cameroonian capital of ing countries. The Fund also provides technical Yaounde, and the loan will be used in bankrolling a assistance to finance the costs of the feasibility stud- road project in this African country, the fund said in a ies of projects, as well as the training of nationals of press release. The project is intended to spur and the borrowing countries. — KUNA 3 Local Wednesday, January 15, 2020 Panel mulls canceling jail penalty in the audiovisual and publication laws Fatwa and Legislation Department approves postal sector’s privatization By A Saleh Bedoons’ passports work for it. The sources added that turning High-ranking sources at the Ministry of the postal sector into a government compa- KUWAIT: Rapporteur of the parliamentary Interior denied rumors about suspending ny run by the private sector will help devel- Ministry ordered to pay educational affairs committee MP Khalil article 17 passports, stressing they are still op postal services, avoid shortcomings and Abul said the committee met to discuss a valid and can be used.
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