KUWAIT: Finance Minister and Minister of State for Economic Affairs and Investment Noura Al-Fassam said on Sunday that the government will undertake serious measures to boost non-oil revenues coupled with rationalizing spending to achieve fiscal balance, through economic reforms, administrative efficiency and strategic investments. Non-oil revenues in the 2025/2026 fiscal year are projected at KD 2.9 billion, up 9.0 percent on the previous fiscal year which estimated them at KD 2.7 billion, according to official figures.

Addressing a press conference to announce details of the budget, the minister said non-oil revenues in next year’s budget contribute 16 percent of total public revenues while oil income estimated at KD 15.3 billion will make up the remaining 84 percent, down from the previous year’s 85.7 percent. The state budget projects a deficit of KD 6.3 billion as revenues are projected at KD 18.2 billion and spending at KD 24.5 billion, according to official figures. The budget is based on an oil price of $68 per barrel.

Fassam said next year’s budget, which starts on April 1, reflects the government’s commitment to achieve fiscal balance through financial and economic reforms, addressing structural defects and boosting government administration. She added the government will also continue to control the efficiency of public spending with the aim to achieve sustainable growth.

The minister said the public debt law is in its final stages and will be submitted to the government for approval. The law will enable the government to borrow from international markets and will use the funds for financing infrastructure investments. Al-Fassam emphasized that the budget prioritizes capital projects and infrastructure developments that directly impact citizens, particularly in education, healthcare, culture and entertainment.

A total of 90 projects are planned under the new budget, alongside 15,853 new job opportunities and a comprehensive digital transformation initiative aimed at improving government performance. The minister added the government plans to reform a law to encourage more Kuwaitis to get jobs in the private sector.

The budget includes allocations for 18 housing projects worth KD 250 million aimed at creating sustainable urban communities in collaboration with the private sector. Infrastructure development remains a priority, with significant investments in transportation and ports to enhance Kuwait’s economic competitiveness. A total of 373 ongoing projects, valued at KD 12.81 billion, have been incorporated into the budget. Major projects include the first phase of Mubarak Al-Kabeer Port; passenger Terminal 2 at Kuwait International Airport; expansion of Umm Al-Haiman wastewater treatment plant and its complementary works.

Al-Fassam did not specify what measures will be taken to boost non-oil revenues, but a senior finance ministry official told reporters that they expect to raise between KD 150 million and KD 200 million from raising charges on public services. Director of Financial Planning Ahmad Al-Emran said that the ministry has initiated contacts with other ministries about repricing public services they offer based on cost and with the purpose of reducing consumption.

The ministry of finance is studying proposals made by ministries and public departments to raise charges on public services, Emran said. Late last year, an Amiri decree was issued abolishing a law passed by the National Assembly in 1992 which barred the government from raising charges on public services without the prior approval of the Assembly. The decree has freed the government’s hands to reprice public services offered at highly subsidized prices.