New proposal to deduct 10 percent of the revenues generated annually into the general budget for the benefit of the Future Generations Fund.
13 August 2022, 12:00 AM
31 August 2022, 12:00 AM
The finance ministry authorities are preparing a proposal to reintroduce the law to deduct 10 percent of the revenues generated annually into the general budget for the benefit of the Future Generations Fund, reports Al- Rai daily.
The reactivation of the law reflects the improvement of Kuwait’s financial situation and its progress towards achieving financial surpluses in light of the rise in oil prices to good levels compared to the period of stopping the deduction during which the country faced a shortage of liquidity, informed sources told the daily.
The sources stated that “the government’s vision proposes deduction at the end of fiscal 2022/2023, provided that work will start from next fiscal 2023/2024, subject to the climate of oil prices remains high and secure.
The sources confirmed that “the price of a barrel of oil above $ 80 will pave the way for achieving abundant reserves during the coming period, and thus compensating for the deficit and covering obligations more, and moving towards launching various development projects, after the Corona pandemic repercussions which put pressure on liquidity in light of the decline in revenues and halt to business activities.”
The sources pointed out that the Ministry of Finance was able to meet the ongoing commitments according to timetables, which include what concerns state ministries in addition to permanent needs, noting that these amounts include commitments to projects that have already been completed by various companies and institutions, in addition to entitlements belonging to government agencies.