50 million dinars annual savings expected after restricting food subsidies to Kuwaitis

• Cabinet decision on food subsidies to reshape ration card system and cut state spending
• Tighter food subsidy controls aim to protect public funds and curb smuggling

The public treasury is expected to record annual savings of approximately 50 million dinars following the implementation of the Cabinet decision issued on November 8, which restricts the provision of subsidized food supplies exclusively to eligible Kuwaiti citizens.

The estimate is based on preliminary data currently being prepared by the relevant authorities in line with the approved implementation mechanism.

According to Ministry of Commerce figures, the number of accumulated ration cards reached 273,730 by the end of September, compared with 267,670 during the same period in 2024, reflecting an increase of 6,050 cards, or 2.26 percent. The total number of beneficiaries rose to about 2.32 million, up from 2.24 million, marking an increase of 78,491 beneficiaries, or 3.5 percent, sources told Al-Rai daily.

Food subsidies allocated for basic commodities during the first ten months of the year amounted to approximately KD 125.9 million, underscoring the financial weight of the subsidy system on the state budget.

Sources indicated that officials at the Ministry of Commerce are currently reviewing the implementation framework of the Cabinet decision in accordance with government directives, with the aim of developing a comprehensive plan.

This includes clearly defining categories that will be excluded from subsidy eligibility. They clarified that individuals whose Kuwaiti citizenship was revoked but who subsequently adjusted their legal status and are treated as Kuwaitis will continue to receive their previously allocated food subsidies.

At present, five categories benefit from the food subsidy system: Kuwaiti citizens, Gulf nationals residing in Kuwait, domestic workers sponsored by Kuwaitis, stateless persons, and other beneficiaries specified by government decisions.

The sources noted that non-Kuwaitis listed on ration cards currently benefit only from subsidies allocated for basic food commodities, and are not entitled to support for subsidized construction materials, which are capped at KD 30,000.

They added that the forthcoming update of the ration card database will lead to a reorganization of monthly food quantities, subsidy values borne by the state, and targeted levels of strategic food stockpiles.

The Cabinet has emphasized a strict ban on exporting or selling subsidized food supplies, limiting access strictly to eligible Kuwaiti citizens. It directed the Ministry of Commerce, the General Administration of Customs, the Public Investment Authority (Kuwait Supply Company), and other relevant entities to take all necessary legal measures against violators.

The Cabinet also instructed government agencies to tighten oversight of subsidy disbursement, enhance coordination to combat the smuggling of subsidized food outside the country, and prevent its exit through land, sea, and air ports, in order to safeguard public funds.

Data from the first nine months of the year show that ration card beneficiaries completed approximately 142,100 transactions, including additions, updates, deletions, and issuances.

These included 44,660 transactions in the first quarter, 50,460 in the second, and 46,970 in the third. April recorded the highest activity with 18,270 transactions, while March saw the lowest at 11,680.

During the same period, the Ministry of Commerce issued 5,230 new ration cards, renewed 4,199, deleted 345, added 98,564 individuals, removed 30,206, and processed 3,558 data updates, reflecting the scale of ongoing adjustments to the subsidy system.