Public spending in Kuwait: cuts necessary and 5 year plan in void

Bader Al Humaidhi, Former Minister of Finance of Kuwait talks about the public spending in Kuwait.

He says, “Well as you know, in Kuwait and to some extent in other gulf states, the main motivator of the economy is the government because the government has the spending power. If the government is spending the wages, salaries, subsidies, projects – especially infrastructural projects, this ought to activate the other sectors. Activate contracting, cementing, steel, everything. Now if the government reduced its spending, this will have a negative effect on all of the sectors. There will be no more demand for steel, no more demand for cement, no more demand for labour.”