Kuwait emir tells MPs spending cuts ‘inevitable’

AFP, KUWAIT CITY: Kuwait’s Emir Sheikh Sabah al-Ahmad Al-Sabah opened the new parliament yesterday by declaring that a reduction in public spending is “inevitable” in the face of weak oil prices.
The emir said the sharp drop in oil revenues has resulted in a huge budget deficit and “there is no other option but to take effective measures to deal with it.”
“I am confident that parliament and my brother citizens are all aware that reducing public expenditure is inevitable through well-studied measures,” he said.
He however said that those measures should spare low income people and take into consideration social justice.
OPEC member Kuwait, which sits on around seven per cent of the world’s proven crude reserves, has sought to cut spending and boost non-oil revenues in a bid to diversify its economy.
But the measures, which included raising electricity and fuel prices, triggered a political crisis that led the ruler to dissolve the previous parliament in October and call for snap polls.
In the November 26 polls, the opposition which vowed to reject austerity measures won nearly half of the 50 seats.

Kuwait emir tells MPs spending cuts inevitable

AFP, KUWAIT CITY: Kuwaits Emir Sheikh Sabah al-Ahmad Al-Sabah opened the new parliament yesterday by declaring that a reduction in public spending is inevitable in the face of weak oil prices. The emir said the sharp drop in oil revenues has resulted in a huge budget deficit and there is no other option but to take effective measures to deal with it. I am confident that parliament and my brother citizens are all aware that reducing public expenditure is inevitable through well-studied measures, he said. He however said that those measures should spare low income people and take into consideration social justice. OPEC member Kuwait, which sits on around seven per cent of the worlds proven crude reserves, has sought to cut spending and boost non-oil revenues in a bid to diversify its economy. But the measures, which included raising electricity and fuel prices, triggered a political crisis that led the ruler to dissolve the previous parliament in October and call for snap polls. In the November 26 polls, the opposition which vowed to reject austerity measures won nearly half of the 50 seats.