The government subsidy on electricity, water and petrol will be lifted within the first six months of 2015, reliable sources from the concerned ministerial committee say. They affirmed that the move is part of the second phase of the governmental plan to reduce expenditures from the state budget, following the cancellation of subsidy on diesel and jet fuel.The sources revealed that the delay in issuing this decision was due to the delay by the concerned authorities particularly Fatwa and Legislation Department to allot necessary conditions in this regard, and its non-inclusion in the general budget of 2015-2016.
They explained that the governmental study conducted for approving the categorization of electricity consumption took into consideration the observations made by the legal experts, the recommendations of the Supreme Planning Council and the dues of Ministry of Electricity with the governmental authorities, citizens and expatriates. “It has become necessary to modify the tariff scheme of electricity and water which was applied since 1966”, they added.
The sources revealed that the government, in the beginning of 2015, will refer to the parliament the details of its project that is aimed for controlling consumption and eliminating depletion, particularly since applying the same fees will increase the annual subsidy on electricity and water to KD7 billion.