According to a report issued by the International Monetary Fund, the gap between public and private sector wages is the highest in Kuwaitamong the Middle East and Central Asia countries, as it has reached 245%, followed by Bahrain, Qatar, and Saudi Arabia.
The report indicated that the public sector wage bills in those countries are higher than the other emerging and developing economies. In fact, these economies have spent about 6 % of their annual gross domestic product on government salaries, which is the equivalent of one-fifth of their total expenditures over the past decade. As a result, the public employment reached 84%.
The Fund suggested that intensive measures should be taken tomobilize the revenues in a fair and equitable manner. Moreover, it suggested the implementation of pro-growth expenditures’ reforms, as well as, reforming the public sector wage bill to boost the private sector by enabling the increase of more investments in the infrastructure and social protection. In addition, it also suggested the removal of distortions from the labour market,as well as, the need to raise the level of governance and increase transparency.
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