Kuwait’s salary expenditures have totaled KD 64.56 billion over the past five years, accounting for approximately 57% of the country’s total budget. The total budget for the five years amounted to KD 112.94 billion, underscoring the significant burden that salaries and related expenses place on the national finances.
In 2019/2020, salaries represented KD 11.96 billion, or 56.6% of the total budget of KD 21.14 billion. The following fiscal year, 2020/2021, saw a shift in budget priorities, as salaries exceeded oil revenue for the first time. Salaries amounted to KD 11.85 billion, or 55.7% of a KD 21.29 billion budget, while oil revenue, which had traditionally been the largest contributor, stood at KD 8.79 billion due to the global economic downturn caused by the COVID-19 pandemic.
The figures for 2021/2022 showed a further increase in salary spending, with the total reaching KD 13.24 billion, representing 57.7% of the total budget. Despite this growth, expenditures for salaries decreased slightly to KD 12.97 billion in 2022/2023, comprising 58% of the total KD 22.36 billion budget. However, in the final account for 2023/2024, salary-related expenses surged again, reaching KD 14.5 billion, accounting for 57.7% of a KD 25.2 billion budget, marking a 12% increase from the previous year.
The “salaries and related expenses” category has consistently been the largest item in Kuwait’s budget, raising concerns about its sustainability. These expenses have not been matched by an equivalent increase in overall revenues, which remain heavily dependent on the fluctuating global oil market. This reliance on oil revenue, along with geopolitical factors affecting oil prices, adds further strain to the country’s finances.
Controversy also surrounds the classification of “salaries and similar” expenses. The phrase has sparked debate over its inclusion in budget calculations, as it encompasses various forms of employee compensation across ministries, judicial affairs, independent institutions, and social services.
The Ministry of Finance clarified that “employee compensation” refers to the total cash and in-kind rewards owed to employees, while the broader “salaries and similar” category includes a wide range of compensation and social support provisions, including contributions to national employment in the non-governmental sector and social care. This extended classification has sparked ongoing discussions regarding the transparency and efficiency of Kuwait’s budgeting process.
