New Measures Introduced in Kuwait to Rein in Public Spending and Improve Budget Management

25/08/2024

New Measures Introduced in Kuwait to Rein in Public Spending and Improve Budget Management

KUWAIT CITY, Aug 25: As part of the government's efforts to control public expenditures and streamline payments, informed sources have disclosed that tighter control measures are being implemented across government agencies to enhance financial planning and improve the preparation of the general budget. These measures are accompanied by a series of targeted procedures and recommendations aimed at achieving greater financial discipline and boosting the efficiency of public finance management.

The sources highlighted that these supervisory recommendations involve multiple agencies and are critical to maintaining financial discipline. The recommendations issued include the following:

1. Adherence to Budget Rules: The Civil Service Bureau is required to strictly follow budget rules, particularly those prohibiting the disbursement of funds on behalf of other government agencies without first collecting the necessary amounts from those agencies and recording them in the current liabilities account (amounts under settlement).

2. Debt Collection: The directives emphasize the importance of taking all necessary steps to expedite the collection of debts owed to government agencies, with a strong focus on adherence to financial regulations. These efforts are part of a broader initiative to address long-standing debts that have remained uncollected for years.

3. Tax Collection: Relevant authorities have been advised to prioritize the collection of refundable taxes and to establish clear procedures for regular follow-up on their collection.

4. Adherence to Development Plan Budgets: Government agencies are instructed to ensure that projects included in the state's development plan are completed within the approved budget for each ministry. The funds allocated for these projects should not be diverted to other obligations, in line with the broader objective of controlling public expenditures.

5. Enforcement of Tax Collection: The Ministry of Finance is urged to strictly implement the rules and executive instructions related to the collection and payment of labor support taxes and zakat, by Law No. 19 of 2000 and Law No. 46 of 2006. This includes ensuring that all due taxes are collected, and recognizing that uncollected taxes represent overdue debts to the government.

6. Adherence to Electronic Stamp Regulations: The Ministry of Finance is also recommended to follow the circular regarding the rules and procedures for implementing government electronic stamps.

7. Performance Improvement: Government agencies are encouraged to develop their performance and address any deficiencies or shortcomings. Each agency is required to submit periodic reports outlining its efforts to rectify issues and implement the recommendations from oversight and follow-up reports.

Additionally, the sources revealed that agencies responsible for monitoring government performance will present a visual report to the Council of Ministers every three months. This report will detail the actions taken by government agencies to address observations and implement the recommendations of the Government Performance Follow-up Agency. It will also include a list of agencies that are not cooperating or failing to submit the required reports within the specified timeframe.