The finance ministry is planning to take serious measures, including raising charges for public services, reducing the huge bill of subsidies and placing a cap on public spending, to achieve “financial sustainability”, local media Kuwait Times reported.

The report, quoting Finance Minister Dr Anwar Al-Mudhaf, said that the assets of the state reserve have almost diminished from KD 33.6 billion in 2015/2016 to less than KD 2 billion currently, using them to meet accumulative budget deficits totalling KD 32.2 billion over the past nine fiscal years. The ministry also drew a gloomy picture of the country’s finances in the next four fiscal years, 2025/2026 to 2028/2029, estimating an accumulated budget deficit of KD 26 billion if things remain unchanged under the assumption that oil prices will average $76 a barrel.

The ministry said it plans to diversify sources of income to reduce almost total dependence on oil income by raising non-oil revenues from KD 2.7 billion now to KD 4 billion in the 27/28 fiscal year.