KUWAIT CITY, Aug 19: The Ministry of Finance has issued new directives urging all government agencies to prepare their draft budgets for the fiscal year 2025/2026 within the limits of their allocated expenditure ceilings.

This directive was communicated through an annual circular released by Dr. Anwar Al-Mudhaf, Minister of Finance and Minister of State for Economic Affairs and Investment. According to the circular, all budget preparations should adhere to the controls and instructions set forth by the Ministry. The focus will be on compressing expenditures, rationalizing spending, and enhancing revenue generation without compromising performance standards. This initiative is part of a broader effort to align with fiscal policies aimed at managing public funds efficiently. The circular outlines the principles and rules that must guide the preparation of budget estimates. It includes detailed instructions on the required forms and tables to be completed by government agencies. These guidelines ensure that budget estimates are based on solid scientific principles and meet the necessary financial and economic policy directions.

Government agencies are instructed to use the Government Financial Management Information System (GFMIS) for preparing their budget estimates. They must adhere to the specified instructions and submit all required tables and forms. The Ministry of Finance has emphasized the importance of meeting deadlines and ensuring that all submissions comply with the outlined requirements. The agencies are warned that delays in submitting draft budgets will result in the Ministry estimating revenues based on previous fiscal years’ performance, considering current circumstances and variables.

The circular also references Decree No. 31 of 1978, which outlines the rules for preparing public budgets and monitoring their implementation. According to Article 5 of the decree, entities must prepare initial revenue estimates as per the Minister of Finance’s instructions and submit them by the specified date. If deadlines are missed, the Ministry will estimate the revenues based on historical data. Article 9 requires entities to prepare expenditure estimates and submit them with a detailed distribution of expenditures according to the Minister’s instructions. Article 42 extends these provisions to supplementary budgets, except where specified otherwise.