Ministry of Finance exerting efforts to control ‘governmental expenditures’

February 4, 2019

KUWAIT CITY, Feb 3: The Ministry of Finance has been exerting tremendous efforts to control governmental expenditures, affirming that relevant studies are being conducted to ensure the highest level of proper expenditure, reports Al-Rai daily quoting an informed source.

The source disclosed that official purchases will decline dramatically as the ministry asked the World Bank to estimate reduction of such purchases in the State budget. He said the World Bank is conducting a study on the expenditures with the aim of making surplus by minimizing expenses. He disclosed the study is being conducted for 11 months and it will be completed in May 2019 at a total cost of more than $1 million.

He added the study adopted the DEA system for measuring and analyzing official expenditures by defining the relationship between inputs and outputs. He revealed the ministry put forth a number of conditions such as defining stages of implementing the plan prepared by the World Bank and the relevant recommendations.

Furthermore, Ministry of Finance has commissioned the World Bank to conduct a comprehensive analytical study of government procurement in the public budget in order to determine the possibility of saving costs and developing special policies to reduce inefficiency in those systems, reports Al-Qabas daily.

According to informed sources, the study, which is expected to be completed by the end of this year at a cost of $1.036 million, will determine an expected reduction in governmental purchases from the total budget of the state, especially in light of a huge increase in government’s spending budget by 12.5 percent in the last two years.

The study will use DEA analysis method to measure the efficiency of the governmental spending in terms of the link between input and output in the light of the best practice.

The plan submitted by the World Bank should include implementation phases and recommendations of the World Bank. It should determine the expected reduction in governmental purchases from the total state budget. The World Bank is also expected to assign a consultant or specialist for checking the public storage and procurement systems and following up the implementation stages and recommendations.

The World Bank’s mandate to carry out the study comes in light of the longstanding cooperation between the government and the World Bank, which resulted in the signing of nine contracts in the last two years at a cost of $70.5 million. These contracts included studies and technical assistance for draft laws, some of which have been submitted while others will extend until the year 2020.