Finance Minister urges swift implementation of projects to drive economic growth

As the new fiscal year 2025/2026 begins, Minister of Finance and Minister of State for Economic Affairs and Investment, Noura Sulaiman Al-Fassam, has urged all government agencies to ensure the timely execution of projects outlined in the annual development plan. By adhering to the planned schedule, the aim is to accelerate economic growth and fulfill the broader economic, social, and political objectives set forth in the plan.

In a newly issued circular outlining the guidelines for implementing government agencies’ budgets for the fiscal year 2025/2026, the Ministry has emphasized that financial transfers should only occur under exceptional circumstances. The circular highlights that such transfers are considered exceptions to the general rule, aiming to preserve the integrity of the state’s budget as a critical tool for planning and controlling expenditures.

Al-Fassam emphasized the importance of authorities carefully determining expenditures based on the estimates for each category, excluding unavoidable costs such as salaries. Expenditures should align with actual and necessary needs, ensuring that resources are allocated efficiently.

Following are the key rules for implementing the new budget:

General Rules:

For fiscal policy considerations, all government agencies are required to take immediate action to collect any due revenues and outstanding debts from previous fiscal years.

All ministries and government departments are required to collaborate with the General Secretariat of the Council of Ministers in implementing the government’s action strategy.

It is prohibited to submit requests to the Council of Ministers for decisions or laws that impose financial burdens on the general budget without first obtaining the opinion of the Ministry of Finance.

All government agencies are prohibited from issuing any decisions that would impose new financial burdens on the state’s general budget without consulting the Ministry of Finance for review and approval. This includes entering into bilateral agreements, memoranda of understanding, or any form of agreement with local or foreign entities, whether governmental or non-governmental that may lead to direct or indirect financial obligations or generate revenue for the public treasury. The Ministry of Finance must be consulted to assess the financial implications and provide its approval before any such commitments are made.

All government agencies must comply with the Audit Bureau’s observations, promptly respond to them, and take necessary actions to address any issues as quickly as possible.

• Taking into account that no commitment to invest in a natural resource or public utility may be made except through a legally authorized contract for a specified period, with preliminary procedures ensuring the facilitation of research and exploration activities while maintaining transparency and competition.
• Taking into account that no monopoly may be granted except through a legally authorized contract for a specific period.

All government agencies must conduct a comprehensive inventory and evaluation of all non-current, non-financial assets owned both within and outside Kuwait. They must also calculate and record the annual depreciation value of these assets and ensure their inclusion in the final accounts.

To achieve the objectives outlined in the annual development plan, such as boosting growth rates, addressing structural imbalances in the Kuwaiti economy, increasing the contribution of non-oil revenues to public finances, enhancing investment spending while reducing current expenditures, strengthening the private sector’s role in economic activity, and correcting labor market imbalances—all government agencies must implement development plan projects as scheduled. They are also required to take all necessary measures from the start of the fiscal year to ensure timely and effective execution.

All relevant authorities, including the Central Agency for Public Tenders, the Audit Bureau, and the Fatwa and Legislation Department, must expedite the decision-making process for procedures related to these projects.

All entities involved in the execution of new construction projects must promptly take the necessary actions to ensure their timely implementation.

All ministries and government agencies must take the necessary steps to collect the state’s accumulated debts and coordinate with the Ministry of Finance to develop appropriate mechanisms that ensure their prompt and effective settlement.

No entity may independently take any measures concerning the status of illegal residents without coordinating with the Central Agency for Illegal Residents, which is the sole official authority responsible for handling matters related to this group. All governmental and relevant entities must cooperate with the agency, facilitate its work, and provide any requested information, documents, or records as required.

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All government agencies are required to establish an inspection and audit office to oversee and monitor all activities related to financial and administrative affairs. These offices must coordinate with various oversight bodies to ensure compliance with legal provisions and uphold the requirements for safeguarding public funds.

All ministers must coordinate with governors, each within their respective jurisdiction, so as to conduct a study identifying the needs and projects required for their governorates. This initiative aims to strengthen the governors’ role in overseeing the implementation of the state’s general policy, monitoring development plan projects, and enhancing the quality of services across all governorates.

All government agencies must comply with the provisions of the Cabinet’s decision, which strictly prohibits granting the Audit Bureau or its audit team’s direct access to government agencies’ automated systems, the Civil Service Bureau’s integrated systems, or the Ministry of Finance’s Oracle system. This restriction aligns with the inspection and auditing mechanisms granted to the Audit Bureau under Law No. (30) of 1964, as affirmed by the opinion of the Fatwa and Legislation Department.

All government agencies must comply with the provisions of the Cabinet Resolution concerning the oversight exercised by the Audit Bureau over the entities under its jurisdiction. This includes the Bureau’s right to obtain photocopies of decisions, regulations, and contracts necessary for carrying out its financial oversight responsibilities. Such oversight must be conducted in a manner that aligns with Law No. 30 of 1964, which established the Audit Bureau, ensuring no conflict with its provisions.

All government agencies must comply with the provisions of the Cabinet Resolution, which emphasizes the responsibility of government agencies to ensure that contracting companies consistently pay their employees’ wages on time.

All government agencies must comply with the provisions of the Cabinet Resolution, which mandates that the Red Crescent Society, public benefit associations, and all government institutions providing in-kind aid and assistance ensure that all such aid consists of national products manufactured in factories within Kuwait and bearing the Kuwaiti logo.

All ministries, government agencies, and the Central Agency for Public Tenders must include in their contracts with cleaning and security service companies a clause stipulating that workers in these fields must receive a minimum wage of 75 dinars per month. This wage must be paid in full without any deductions for housing, subsistence, health insurance, transportation, or any other expenses or obligations.

Government agencies must include a condition in the terms and conditions documents for security and catering operations requiring that all security and catering supervisors in bidding companies be Kuwaiti nationals. Any bid that does not comply with this requirement will be rejected.

All government agencies must comply with the Cabinet decision requiring companies contracting with them to house their workers in designated workers’ cities. Additionally, the technical body responsible for studying development projects and initiatives must coordinate with the Ministry of Finance and the Fatwa and Legislation Department to establish the appropriate legal and contractual measures for implementing this decision.

All ministries and government agencies must inform the Ministry of Foreign Affairs of any contracts they enter into with external parties, including previously concluded agreements with foreign companies, contractors, or institutions.

Source: Al Qabas