The delegation of the International Monetary Fund (IMF) recommended to Kuwait, as part of its closing report, to gradually reduce the wage bill by harmonizing the salary ranges between the public and private sectors.
In this context, the newspaper 'Alrai' reported that the IMF delegation also recommended fair pricing of public services in terms of cost recovery, rationalization of transfers to the various institutions through appropriate control and implementation and increased public investment.
The delegation also stressed that covering financial needs, without resorting to other sources of funding (which will result in the exhaustion of the assets of the general reserve fund available in less than two years) will be a major challenge for the Kuwaiti government. It added that the general budget balance would go from a surplus of around 5.5% in 2019 to a deficit of the same value by 2025. According to the IMF, the budget would register a cumulative deficit of around 55 billion dinars over the next six years excluding government investment income.
According to old official data, the real deficit increased by 9.2 billion dinars (30.33 billion dollars) in the 2020-2021 finance law. According to data published by the Ministry of Finance, imports decreased by 6.5% or about 14.8 for the 2019-2020 finance law.
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