KUWAIT, Feb 9 (KUNA) -- Deputy Prime Minister, Minister of Finance and Acting Minister of Oil Anas Al-Saleh on Tuesday affirmed anew the Government approach toward rationing subsidies for sake of checking excessive consumption and directing the State support to the entitled citizens.
Minister Al-Saleh, during a debate with the MPs at the Parliament regular session, indicated that the recently declared initiative by the Amiri Diwan that it would begin abiding by the tight-belt approach was followed with directions by the Government to its various departments to trim expenditures.
Those who have been engaged in "rationing and reforming the subsidies are sons of the homeland, those who believe that it is necessary to take the needed measures for realizing sustainability and ensuring the State will be able to accomplish sustainable growth," he said.
He reiterated that rationing the subsidies is not the sole solution to the financial crisis; it is one of the plans for reforming the economy, rejecting again charges that the current Government and the Parliament are responsible for the State budget defects.
Minister Al-Saleh added, during the parliamentary deliberation, that the Government scheme regarding the subsidies would be backed up with a crystal-clear executive plan, pending submission from the Government Economic Committee and endorsement by the Government.
"We have real and explicit deficit" in the State budget, the minister made it clear anew, noting that expenditures in the final account of the 2004-2005 fiscal year reached KD 6.3 billion, but they jumped to KD 21.4 billion in the 2014-2015 fy.
State spending has soared alarmingly, by more than six times during 14 years, he said, noting that payments and wages account to 50 percent of the budget, while subsidies account to 25 percent -- however now they stand at 20 percent.
Actual spending on the salaries tripled, from some KD three billion in 2004-2005 fy to KD 11 billion in the 2014-2015 fy.
As to the financial allotments for covering the subsidies, the minister said that they have risen by more than four times, noting that "the subsidy inventory now has reached less than KD three billion, with decline of the oil prices." The Parliament today's session ended. A complementary one will be held tomorrow (Wednesday). (end) sss.rkf.rk