Non-oil revenue grows 41% in last fiscal year to reach KD 2.4 billion – ARAB TIMES
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This decision reflects the success of the government’s plans to diversify sources of income
KUWAIT CITY, July 31: Non-oil revenue increased in the last fiscal year by 41% to about 2.4 billion dinars, compared to revenue of 1.7 billion in the 2020-2021 fiscal year, the highest level in 7 years, and reflects the success of the government’s plans to diversify revenue sources to increase the share of non-oil revenue in the general budget, Al-Qabas daily reports citing reliable sources. The decline in oil prices and the increase in the budget deficit in recent years have prompted the government to move towards increasing budgetary revenues by taking numerous measures and repeatedly instructing the public administrations to increase their revenues. non-oil companies, in addition to forcing them to develop a vision of diversifying their annual income, which has finally borne fruit.
The sources pointed to a number of reasons behind this jump in non-oil revenue over the past year, including electronic transformation, debt collection, new services, improved efficiency of Debt recovery. The transformation of many government agencies to deliver their services electronically has greatly increased the revenue of these agencies by adhering to the procedures for electronically collecting fees imposed on their services. The budget is suffering from the accumulation of financial covenant accounts and debts due for many years, with total debts owed to the State at the end of the last fiscal year 2020-2021 amounting to approximately 1.7 billion dinars, an increase of 5.5% compared to the debts due during the 2019-2020 financial year, during which they recorded 1.6 billion dinars.
Among the measures taken by the Ministry of Finance to collect the unpaid debts, stakeholders have been asked to pay the money and stop all transactions for those who are late until the payment of the required dues has been completed. been carried out, and to contact the competent authorities (the Public Authority for Agriculture and Fisheries Resources and the Ministry of Electricity and Water) not to carry out the steps of the contractors, except after having verified payment of contractual fees, as well as taking legal action against latecomers and referring them to the judiciary.
Several government agencies announced the provision of new services to the public that included increases to prescribed fees, including the Department of Health, which increased the fees it offers to resident beneficiaries, in addition to several other agencies such as: the Ministry of the Interior and others. The sources said that some time ago the Cabinet approached all Government Ministries and Agencies to pledge to increase their revenues to support the government’s trend of increasing their non-oil revenues, in addition to requiring them to develop a vision to diversify their sources of annual income. provided that the implementation of services that do not require legislative changes, such as offenses, fines and transactions related to electricity and water.
At the beginning of last year, the Ministry of Finance sought to take concrete measures to collect public funds and arrears (debts) by implementing a government program aimed at increasing the efficiency of collection, in particular by dealing with accumulated debts of government agencies and endeavoring to collect them by modern electronic means; an inventory of bad debts which lacks data to facilitate the monitoring and collection process; provide a unified portal to collect revenue from government agencies and provide aggregated and detailed data on the volume of debts of parties participating in the project