The Kuwaiti government warns of the end of the model “welfare state”
The Kuwaiti government warns of the end of the model “welfare state”
Created on Tuesday, 29 October 1 / Okrudolf 2013 13:14
Kuwait / Agencies
Kuwait warned its citizens yesterday that the model of the “welfare state” adopted by the Kuwaitis care of “cradle to grave” unsustainable It is time to change it.
Prime Minister Sheikh Jaber Al-Mubarak Al-Sabah by offering his government’s program for the next four years to parliament, “the truth that should be on everyone aware that the current welfare state which she is accustomed Kuwaitis are not viable.” The program, which covers the period up to 2016 – 2017, to reconsider the prices of goods and services and government support as well as the adoption of a system my taxes in a country that gets 94% of its income from oil and does not pay in which citizens or companies of any taxes, as promised by the government to reduce public spending, especially salaries and subsidies and the defense budget, where previously the Minister of Finance Sheikh Salem Abdul-Aziz al-Sabah confirmed last week that the current spending accounts for 85% of the budget.
The President called on the government to “the necessity of the Kuwaiti society shifted from the consumer to the capabilities of the country to the product.” The government has warned that the survival of things for what it is without reform will cause the registration of real Kuwait’s budget deficit starting from the year 2021.
The government expected that in this case, سيتراكم deficit to reach 414 billion dinars (1.46 trillion U.S. dollars) in 2035, it did not change in fuel prices during the last 15 years in Kuwait, while sold electricity to the citizens and expatriates at a price not exceeding 5% of the cost price.
The International Monetary Fund has already urged Kuwait more than once, most recently earlier this month to cut public spending, which has tripled in seven years to reduce the risk for any drop in oil prices, also urged the International Fund Kuwait to accelerate structural reforms and reactivate the program late developmental value of $ 110 billion, as well as the reduction of government support for prices.
According to the Kuwaiti Ministry of Finance, has increased the size of public spending from $ 24.4 billion in the fiscal year 2005-2006 to $ 68.2 billion in fiscal year 2012 – 2013, and increased the size of salaries in government institutions in the same period from $ 6.7 billion to $ 17 billion, also rose in the same period oil revenues of 45.9 billion dollars to 106 billion U.S. dollars where Kuwait recorded fiscal surpluses accumulated during the last 13 fiscal year last reached $ 300 billion, and increased her assets صندوقها sovereign-run General Authority for Investment to more than 400 billion dollars, while still political pressure adversely affect the development projects where the government has demanded the lifting of prior censorship on the awarding of major projects to ease the cycle of documentary routine as threatened more than vice interrogate the prime minister is embarked on such a move, which they consider a door for corrupt financial and Cancel the principle of control over public funds, Kuwait witnessed last week undecided parliamentary government after deciding the Minister of Works to address the Central Tenders Committee to cancel the construction of four hospitals grounds that the high cost of construction has led to more than a threat deputy questioned him.
uragency.net
