The 2020-2025 development plan warns that Kuwait could lose the assets of the General Reserve Fund and Future Generations Fund by 2035 if the current spending rates and drop in oil prices continue, Al Qabas reported.
The Development plan stressed that the need for financial and economic reforms delaying in addressing the issue can worsen the situation.
The plan stated due to the total dependence of public finances on a single source of income and the dip in oil prices, Kuwait faces an exceptional and serious challenge that threatens its ability to fulfill its financial and international obligations.
If the financial and economic conditions continue to deteriorate at the current rate Kuwait could face the faltering of individuals, companies, banks, and institutions, a dangerous rise in unemployment rates, the collapse of social services, deterioration of social and food security, accompanied by large inflation in the cost of living.
The government plan affirmed the state must set up programs aimed at diversifying sources of income and stopping waste in public expenditures.
The central goal of economic reform in Kuwait is to achieve balance in the structure of the national economy, by redrawing the role of the government in economic activity.
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