According to the latest economic brief published by National Bank of Kuwait, higher budget spending in the first six-month period of the fiscal year 2001/2002, came primarily from increases in transfers and miscellaneous expenditures, which rose 22 percent to KD 1.09 billion. More than half of this increase was accounted for by a rise in housing loan forgiveness, which was up by KD 62.5 million. Another KD 35.6 million was due to servicing the government’s outstanding Government Debt Bonds used to purchase bad debts from the private sector. Increases of KD 39 million and KD 30 million were also seen in miscellaneous expenditures at the Ministry of Defense, most likely in wages and salaries to military personnel and in spending on military hardware, respectively. Wages and salaries increased by KD 21 million or four percent. This was largely due to increases at the Ministries of Education, Social Affairs, Interior and Information. Wages and salaries fell at two service-oriented ministries that hire many non-Kuwaitis, namely the Ministry of Electricity and Water and the Postal Department at the Ministry of Communications. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
