Budget approval delay hinders KD 814 mn development projects in Kuwait

The Ministry of Finance has circulated directives to government agencies, stipulating that it is not permissible to sign new contracts for the fiscal year 2024/2025 except after the National Assembly approves some sections of the budget or the issuance of the budget law. However, Circular No. 2 of 2024 issued by the Ministry of Finance allows government agencies, with prior approval, to initiate procedures such as launching practices and tenders described in their respective project budgets for the fiscal year 2024/2025. Contracting procedures should not be completed except after obtaining approval of the relevant budget sections. Excluded from this are contracts for periodic supplies, employment, services, maintenance and rents, in accordance with Decree Law No. (31) of 1978.

To accelerate the implementation of the project in line with the approved annual development plan for the years 2024/2025, government agencies were directed to coordinate with the relevant authorities and initiate the necessary procedures. Spending on these projects must adhere to the circular instructions and any subsequent directives issued by the Ministry of Finance. In a related context, he revealed the approval of the Ministry of Finance to include the costs of study, design and preparation of documents for the first phase tender for Gulf Railways within the budget of the General Authority for Roads and Land Transport.

This initiative aims to develop the railway project, which extends approximately 2,117 kilometers from Kuwait to Muscat in the Sultanate of Oman, as envisioned since 2009 to facilitate transportation and trade between the Gulf Cooperation Council countries. In addition, the first phase of the Kuwait-related section of the railway, which extends from the Nuwaiseeb Center to the main passenger station in the Shaddadiya area, covers a distance of 111 km. This highlights ongoing efforts to promote critical infrastructure projects, despite the challenges posed by budget delays.

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