The Government of Kuwait presented a detailed explanation of the National Program for Economic and Financial Sustainability (ESETAMA) to the National Assembly, which began in 2016 and extends for 5 years. It aims to reduce the country’s budget deficit to less than 3 billion dinars by 2020.
The program is based on timetables in which the state aims to increase the competitiveness of the national economy by introducing the necessary reforms to improve the economic environment and maximize non-oil revenues.
There are four goals the program intends to implement by the end of 2021, which means that it is ranked as one of the world’s first third in the World Bank’s ease of doing business index and a growth of private sector contribution to GDP, up 20% compared to 2016, Private sector workers from 70 thousand to 100 thousand.
It notes that the program does not include the 5% value added tax and the corporate profit tax of 10% announced by the government in previous programs.
Kuwait has announced the end of January the government budget for the fiscal year 201-2019, which ends on 31 March 2019, expected to total expenditure 20 billion dinars (66.7 billion dollars) and total revenue 15 billion dinars.
The Minister of Finance d. The deficit will be about 5 billion dinars (about 17 billion dollars) before deducting the reserve ratio for future generations and 6.5 billion dinars after deduction, adding that the deficit will be financed through borrowing and withdrawal from the general reserve.