KUWAIT CITY: Even though uncertainty surrounds the National Assembly’s ability to resume sessions and approve budgets despite efforts to resolve the ongoing political crisis, and even though the Minister of Finance Khalifa Hamadeh avoided responding to a question by MP Mohalhal Al-Mudhaf regarding the impact of the state’s ability to pay salaries through its economic reform plans, informed sources say, “It is possible to adjourn the session before the approval of the budgets.”
They explained that, “The biggest problem will inevitably appear in the coming period in the aspect of salaries, subsidies and jobs.
This means failure to approve the budgets will not affect the salaries, but it will inevitably harm many sectors and projects that suffer from lack of liquidity, and this will lead to more austerity in public spending.
This will also negatively affect expenditures on basic aspects that citizens have been benefiting from for decades. It will lead to some expected political measures in the face of the crisis.”
The sources indicated that suspending the deduction of ten percent of the budget in favor of the future generations fund will help to some extent in reducing the deficit, but it will not be sufficient in the long term without borrowing, especially with the expectations that Kuwait’s debt will increase to more than 75 percent of the GDP within the next five years.
They expressed their fear that taxes such as Value Added Tax and selective goods tax may not remain optional, and might be imposed by the end of the current fiscal year.
The sources explained that the National Assembly speakership will send invitations to hold regular sessions, as well as the special sessions that are compatible with the internal regulations.
In the event that the mandatory quorum is not achieved or the government is absent due to sabotage attempts or not being able to attend, the speakership will adjourn the session, and each member will bear responsibility for his decision.
They stressed that what happened in the previous parliamentary session will not serve as a reason to dissolve the parliament or hold early elections.
© 2021 Arab Times Kuwait English Daily. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).