Kuwait's economy suffers from glaring structural errors induced by accumulations that have stalled development, the Ministry of Finance's Undersecretary Khalifa Hamada said on Tuesday.
In a speech to kick off the 'Euromoney 2016 Conference', Hamada, who spoke on behalf of Deputy Prime Minister, Minister of Finance and Acting Oil Minister Anas Al-Saleh, said that these glitches are related to governmental procedures, adding that bureaucracy has encumbered economic production.
Moreover, the Ministry of Finance's Undersecretary noted that the flaws are also the result of irregularities in the job market, saying that the government has struggled to provide employment for nationals.
Speaking on the primary factor that has impeded growth, Hamada said that the nation's budget heavily relies on oil revenues, an issue if not remedied, would be detrimental to the country's economy. He also noted that public spending should center on efforts to maximize production capacity to ensure sustained development.
Furthermore, Hamada made a correlation between financial reforms and economic growth, as he listed numerous factors that could help eliminate any hindrances to growth, chiefly, the addition of non-oil revenues and to rationalize public spending, measures he described as the two focal points of financial reforms.
On the government's role in developing the economy, he said that it should monitor economic procedures and enhance collaboration with the private sector, which would result in a robust market that will keep consumers satisfied.
The Ministry of Finance's Undersecretary also urged the private sector to contribute to economic growth through public projects and increased cooperation with the government sector, adding that citizens should own a 40 percent share of these projects.
Elaborating on reforms needed to prop up the economy, he said that they should also include administrative and institutional ones that will increase efficiency and lure local and foreign investment.
Hamada also spoke of a series of measures taken by the Ministry of Finance pertinent to the budget for the fiscal year 2016-2017, where a number of public services and products are being reviewed to ensure better prices and quality, factors that will contribute to boosting non-oil revenues and improving the country's financial structure.