Spending cuts to save $33bn for Kuwait in 5 years

Emirate has first budget deficit in 16 years

Kuwait will save around KD10 billion ($33 billion) in five years as a result of austerity measures announced by the government to support a fiscal deficit because of low oil prices, a Kuwait newspaper has reported.

Kuwait’s finance minister Anas Al Saleh will present details of the “rationalization” plan to the government at a cabinet meeting on Tuesday, Alanba said.

“Financial sources said the plan will save nearly KD10 billion in five years…it includes spending cuts, lifting of subsidies on power, water and petrol besides other austerity measures,’” the paper said.

Kuwait expects a budget deficit of around KD4.6 billion ($15.2 billion) in its 2016-2017 budget as a result of weak oil prices, its first fiscal shortfall in 16 years.