40 ALRAQABA . ISSUE 18 While the government continues to postpone the initiation of financial reforms, the public budget deficit will continue to grow, leading to immense implications affecting the State’s financial and economic position. Such implications include: - The drawback in the State’s development process even with the release of an ambitious vision that is expected to be achieved according to the drawn plans within the period 2020 – 2035; - The depletion of liquidity in the General Reserve Fund (GRF), in addition to the drop in its good assets that contributed to increasing its revenues in contrast to the ill-considered drawdowns that have amounted to KD 42,045 billion since 2015/2016 up until 2020/2021; - The increasing risk of reliance on oil as a funding source for the public budget, as it is subject to a number of dynamics that were previously mentioned which cause the fluctuation of its prices within global markets; - The multiple downgrades in Kuwait’s credit rating by international credit rating agencies due to the delay of economic reforms and the increasing risks of the persisting fiscal deficit. Despite the evident impact of such downgrades, no action has been taken to tackle this issue. Below is an overview of Kuwait’s credit ratings assigned by the credit rating agencies Standard & Poor’s (S&P), Fitch Ratings, and Moody’s- successively. Article Feature Kuwait Credit Ratings
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