Bill draws ‘Future’ 5 billion – ‘Unborn’ own fund –

KUWAIT CITY, February 23: National Assembly Spokesman Marzouq Al-Ghanim said he received the transitional government’s draft law amending Law 106/1976 on the Fund for Future Generations on February 17, and received it the following day forwarded to the Finance and Economic Committee.

Speaker of the National Assembly Marzouq Al-Ghanim

He revealed that the bill will allow the government to withdraw a maximum of KD 5 billion from the fund each year to help address the budget deficit. He believes the Assembly will not approve the bill for a variety of reasons, and points out that the current generation does not own the fund. He said, “The future generation consists of our children; So we have to work in their interest, not ours. ”

He argued that withdrawing from the fund was not the best option as the cost of liquidating the fund’s assets of KD 5 billion was estimated at KD 300 million, while the cost of obtaining the same amount of credit from the international market be about $ 75 million. He added that the fund’s investments generate income between six and ten percent annually. So what’s the point of liquidating the assets of such a high-yield fund instead of getting a loan at around one percent interest? He made it clear that borrowing is not in itself wrong as other countries are doing the same. The problem, however, is how the loan is spent.

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He said if the loan is used for investment it is a correct move; However, when used to cover ongoing expenses, it is like a temporary pain reliever. He claimed that the interim government repeated its mistake; Since a bill on borrowing in the amount of KD 20 billion had previously been submitted without explaining the reasons for this step to the citizens, the bill was rejected.

On the same matter, MP Badr Al-Dahoum called on the Kuwait Economic Society (KESOC) and Kuwait University’s economists and academics to conduct a study to find plausible solutions to the country’s economic problems. He promised to support such studies until the congregation approves them.

He said he took this step after realizing the government was unable to address the economic problems and denouncing the government’s plan to withdraw KD5 billion from the fund. He added that a government that couldn’t manage the state during the surplus period when the price of oil reached $ 120 a barrel cannot find solutions in difficult times – when the price of oil is very low. He added: “Since HH Prime Minister Sheikh Sabah Al-Khalid is not competent enough, let him go to leave a room for someone who is able.”

In addition, MP Muhammad Al-Mutair said he had no intention of approving such a bill. He advises that if it is a loan with clear terms of payment, and if the government comes up with a clear plan to deal with the economic problem, he might consider having the payout once.

By Saeed Mahmoud Saleh Arab Times staff

Source: ARABTIMESONLINE

SYED WAJITH

Syed Wajith writes about India National News for Mykuwaits website, out of India. Syed Wajith is a Junior Reporter for Mykuwaits.com and has frequently written about the latest developments around the Indian States. Syed Wajith is available on Facebook at @syed.wajid.31, Please send in your leads and tips.
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