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Speaking to Kuwait TV about the expected deficit in the state budget, the Minister of Finance said that the deficit is expected to reach about KD 26 billion over the next four years, and that over the past decade, the state treasury has used KD 33 billion to cover the deficit. Undoubtedly, these figures clearly indicate poor management, lack of development planning and failure to take advantage of opportunities to increase revenue sources and alleviate the deficit. It is well known that over the past three decades, state representatives have illegally used their power to implement laws that have led to the closure of the state and the expulsion of investors.
These MPs passed laws aimed at political Islamisation that were designed to stifle institutions. This prevented successive governments from issuing ministerial decisions and laws to encourage investment. Both authorities will be held accountable if steps are not taken to prevent deficits before further action is taken. However, the responsibility lies more with the government, as they represent the executive and have the necessary reports and studies to recognise the risks and shortcomings. So what did the government do to remedy all this? Nothing… it instead gave in to some influential people and handed the “needle and thread” to the parliamentary group so that they could implement their agenda.
On the other hand, other countries, especially in the Gulf region, are similar to Kuwait in terms of culture, society, economy and even climate, but benefit from abundant financial resources. Over the past three decades, they have worked hard to build a very advanced industrial, commercial and service base, thereby diversifying their sources of income. These countries have escaped from fiscal deficits and even increased their investment capacity to a level that Kuwait seems unable to achieve unless they race against time and make a comprehensive effort.
However, looking back at the performance of some of the current ministers, it seems that this is almost impossible. No doubt, improving national output is fundamental, but it requires concrete measures such as enacting laws, removing obstacles that block the country, tackling inflation that eats up employees’ wages, and quickly resolving issues related to labor shortages. Instead of flooding the country with new expatriates, the Ministry of Home Affairs and the Ministry of Manpower could curb the visa trade by offering residence permits (for a fee) to violators. Doing so would kill two birds with one stone. Why don’t we learn from our neighbors?
A few days ago, I read about the Emirate of Dubai celebrating its most beautiful beach, which is an extension of the state-owned beach rented under the BOT system, as well as some external roads, and this made me think about this question. It increases real estate investment and industrial income, which is what Saudi Arabia does. Saudi Arabia will soon start producing electric cars. It has also established partnerships to produce weapons and other products. As for the most painful part, Kuwait suffers from a huge deficit due to unbridled subsidies, which, according to estimates by the Minister of Finance, consume about 4.529 billion Kuwaiti dinars per year.
As we all know, the inflation rate is less than half of this figure; therefore, if wages are raised, subsidies are rationalized and distributed to those in need, this will save the budget significantly. There is also Failaka Island and other islands. We have been hearing about their development for years, but no progress has been made so far, so why not give these islands to the Social Security Public Institution? By doing so, it will work to invest in the construction of recreational facilities and free trade zones and address its actuarial deficit. It will also become a place of recreation for Kuwaitis and residents who spend about KD 4.5 billion abroad every year during their vacations. Achieving all these goals is feasible with a strong will and a clear vision. Excusing inaction with “working in silence” or “nothing but health” despite the challenges facing the country is a double failure. Maximizing national output requires strong laws and competent leadership.
Ahmed Jarallah
Editor-in-Chief, Arab Tim Magazine
This news has been read 74 times!
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