Kuwait to rise as financial hub, enhance living standards, plans Finance Ministry

• The Ministry of Finance has directed government entities to prepare revenue and expenditure estimates in line with fiscal policies.

• The estimates focus on spending cuts, cost control, and compliance with existing laws and regulations.

• A key feature of 2025/2026 budget is its adherence to the budget codes and classifications in Circular No. (4) of 2015, following IMF’s 2001 GFS standards.

The Ministry of Finance has instructed all ministries, government agencies, and independent institutions to review and prepare their revenue and expenditure estimates in alignment with the state’s general policies on fiscal responsibility.

The estimates include rationalizing spending, reducing and controlling expenditures, and eliminating unnecessary or secondary costs that do not impact the performance of government entities. Additionally, all financial planning must comply with the relevant laws, decrees, and decisions in effect at the time of these estimates.

In the introduction to the 2025/2026 budget, the Ministry of Finance expressed its aspiration to achieve key political, economic, and social objectives. It aims to enhance citizens’ standard of living and position Kuwait as a leading financial and commercial hub for both local and foreign investment.

The introduction highlighted that the state’s general budget is formulated based on the approved financial program for the fiscal year 2025/2026. It encompasses all estimated public revenues and expenditures for ministries and government departments during this period while closely monitoring political, economic, and social developments and their impact on public finances.

The General Budget Affairs Department of the Ministry of Finance has prepared the government departments’ budget for the fiscal year 2025/2026 in alignment with the state’s overarching financial, economic, and social policy directions.

One of the key features of the 2025/2026 fiscal year budget is that it has been prepared in accordance with the basic budget codes and classifications guide outlined in Circular No. (4) of 2015. The classification follows internationally recognized concepts and definitions based on the Government Finance Statistics Manual (2001 GFS) issued by the International Monetary Fund (IMF).

The fiscal year 2025/2026 budget was also prepared in accordance with the provisions of Circular No. (3) of 2024, which outlines the guidelines for estimating the state budget, government departments, and affiliated bodies. It adheres to the established principles and rules for budget preparation, following the cash basis classification.

Oil revenues for the fiscal year 2025/2026 were estimated based on an assumed barrel price of $68 and a production volume of 2.5 million barrels per day.

The expenditures in the budget for ministries and government departments for the fiscal year 2025/2026 are estimated at 24.5 billion dinars, distributed across various listed items.

The projected shortfall, with revenues falling short of expenditures, is estimated at 6.3 billion dinars. Meanwhile, total revenues for ministries and government departments are expected to reach 18.2 billion dinars.

Source: Al Jarida