The committee responsible for reviewing all government subsidies for citizens recently announced the new price of diesel and kerosene for September, adding the two commodities will be sold for 105 fils per liter in fuel stations, reports Al-Anba daily quoting reliable sources.
They explained the committee discussed the work plan of Ernest & Young Company which is responsible for setting policies to reform subsidies in Kuwait, indicating the policies are based on several mechanisms instituted through careful study of the current situation and understanding of the goals of subsidy designed to reform and to yield positive socioeconomic results through proposed scenarios that specify the mechanism of application.
They made it clear that the committee on Monday will discuss the outcome of studying regulations for export of the derivatives of subsidized kerosene.Meanwhile, a committee was formed to study the state of affairs of the local companies using kerosene as a primary substance for production.
The committee will examine products of the companies in question through an international specialized laboratory to specify the percentage of kerosene in each product and to decide the mechanism of supplying kerosene to the companies. In other news, the Ministry of Finance will soon complete a study on the low cost method to address the budget deficit through the issuance of bonds and financial instruments, reports Al-Anba daily quoting sources.
Meanwhile, sources from the banking sector denied the allegation that banks lack the ability to finance the deficit due to capital and lending requirements. Sources stressed the banks can finance the bonds and instruments by using their budgets or offering these financial instruments to company and individual clients. On the other hand, Al-Shahid daily has reported that the ministry is currently studying the possibility of removing unprofitable projects and investments from the development plan.
Sources explained this is part of efforts to control expenditures and prevent wastage of government funds, indicating the total cost of these projects and investments is estimated at KD 10.3 million. Sources said the ministry has formed four teams tasked to review the projects included in the development plan to identify which ones are feasible and those expected to cause losses to the State.
Source: Arab Times