Kuwait’s Finance Minister and Minister of State for Economic Affairs and Investment, Noura Al-Fassam, announced on Sunday that the government is taking serious measures to increase non-oil revenues. These measures also focus on rationalizing spending to achieve fiscal balance through economic reforms, administrative efficiency, and strategic investments.
According to official figures, non-oil revenues for the 2025/2026 fiscal year are expected to reach KD 2.9 billion, marking a 9.0% increase from the previous year’s KD 2.7 billion. In the new budget, non-oil revenues will contribute 16% of total public revenues. Meanwhile, oil income is projected to make up 84%. This amounts to KD 15.3 billion—down from 85.7% the previous year.
The budget, which begins on April 1, forecasts a deficit of KD 6.3 billion. Total revenues are estimated at KD 18.2 billion with spending at KD 24.5 billion. The budget is based on an oil price of $68 per barrel.
Al-Fassam emphasized that the government is committed to achieving fiscal balance through financial reforms, addressing structural issues, and enhancing government efficiency. The budget also focuses on sustainable growth by prioritizing key sectors like education, healthcare, culture, and entertainment. There are 90 projects planned and 15,853 new job opportunities. Furthermore, a digital transformation initiative is being introduced to improve government performance.
In terms of infrastructure, the budget includes 18 housing projects worth KD 250 million. It allocates significant funding for major developments like the Mubarak Al-Kabeer Port, Passenger Terminal 2 at Kuwait International Airport, and the expansion of the Umm Al-Haiman wastewater treatment plant. The total value of 373 ongoing projects in the budget is KD 12.81 billion.
While specific measures to boost non-oil revenues were not detailed, a senior finance ministry official indicated that the government expects to raise KD 150 million to KD 200 million by increasing charges on public services. The Ministry of Finance is working with other ministries to reassess the pricing of these services. This step is aimed at reflecting costs and reducing consumption.
Additionally, a recent Amiri decree abolished a law that previously required parliamentary approval to raise public service charges. This gives the government greater flexibility to adjust prices for public services that have been highly subsidized.
