The National Assembly approved the budgets for the attached and independent entities, as well as for the ministries and government departments for the fiscal year 2022-2023, during its regular session on Tuesday.
An Arab daily reported that the Council approved the first report of the Budgets and Final Account Committee, listed as urgent to the draft laws in order to link the budgets of the 22 annexes for the fiscal year 2022-2023 and referred it to the government, by a majority of 52 votes and 5 rejections, as well as one abstinence out of the number of attendees 58. In addition, the Council also approved the second report of the Committee, included as a matter of urgency regarding draft laws relating to the budgets of the independent bodies for the fiscal year 2022-2023, which are 17 projects by law, with a majority of 53 votes, 5 rejections, and one abstinence, out of 59 attendees, and referred it to the government. The vote was a roll call. Moreover, the Council also approved the third report of the Committee, regarding a draft law linking the budget of ministries and government departments for the fiscal year 2022-2023 and transmitting it to the government, with a majority of 53 votes in favor, 4 disapprovals, and one abstention out of 58 attendances.
MP Obaid Al-Wasmi, Saleh Ashour, Mubarak Al-Hajraf, Hamdan Al-Azmi and Saud Al-Asfoor rejected the budgets of all deputies, while Khalil Abel abstained from voting. The Minister of State for National Assembly Affairs Ammar Al-Ajmi said that the government is grateful to the representatives for their interaction, and will remain on the pledges to take all the observations, and what concerns officials about Kuwait, its constituents and future.
Meanwhile, the Secretary-General of the National Assembly, Adel Al-Loughani, read the recommendations made by a number of deputies, which included the commitment to submit annual reports by government agencies to the National Assembly and the Ministers, and to activate the functions of the Inspection Office to oversee financial and administrative affairs and to inform the Anti-Corruption Commission of any corruption incidents.
Additional recommendation was made by a number of deputies obliging the government to submit a periodic report every three months on industrial, service and craft plots, including a report on suspicions of allocating plots and on violations in state property. Several deputies also recommended preparing a study to link the annual salary increase with state inflation, and to rush the strategic alternative with the separation of the oil sector due to its nature of work.
Finance Minister Abdulwahab Al-Rasheed stressed during his intervention in the session that the road to reform requires cooperation. He was quoted stating that the government had dealt with the budget most of the feedback received and pledged to address the rest, while adding vacation allowances, frontlines, the South Saad Al-Abdullah city project, and construction support, and others. He also said that officials reversed the government’s next four-year work programme, which requires four budgets. Al-Rasheed denies allegations placed on the government and the Council regarding splurging public money, saying it is incorrect and that the frontlines are executive obligation to fulfill, mentioning that the Budget Committee has helped in the matter.
The official also pointed out that the financial management of the state differs from managing a private company, as authorities have a social responsibility towards citizens, stressing that they working to enhance the welfare of Kuwaiti citizens. He responded to the accusation that these funds will increase inflation in Kuwait, noting that the problem of inflation is much greater than rewarding classes and selling vacations. Besides inflation, there are external factors to focus on such as the coronavirus crisis and the Ukrainian-Russian war, and internally monopolistic imbalances and land scarcity.
He added that inflation in Kuwait is at least 4.2 percent exceeding the average in the Gulf countries, detailing that average citizens spend at least 33 percent of their income on housing. According to the official, this is due to the scarcity of lands where society grows, but the geographical spot does not grow, hence, the goal is to liberate the state’s lands. He acknowledged the measures some neighboring countries have taken, as well.
According to Al-Rasheed, Saudi Arabia provided 20 billion riyals in social support, as well as the UAE, Egypt, Turkey and Qatar. These countries have inflation rates that also reasonably support their citizens. He said in a statement that supporting the Kuwaiti citizen is a matter of responsibility, such as in ensuring the management of prices and support for low-income families.
Meanwhile, MP Abdul Wahab Al-Issa said that the cabinet discussed the state’s general budget last week, and it achieved a surplus of more than 330 million dinars. On Tuesday, the general budget entered a deficit of more than 120 million dinars, and in seven days the Kuwaiti budget covered the deficit, adding that officials will avoid deficits and not encourage private sector employees to seek government employment.
The Minister of Finance responded that this is a budget based on the price of a barrel of oil at $80, and the price of a barrel exceeds that. MP Hamdan Al-Azmi criticized the failure to include the final account with the budgets, saying the Minister of Finance stood up but appreciated the government’s stance, and so long as the budget entered into bargains, rejecting the budget that came without the final account or further discussions.
Shuaib Al-Muwaizri, on the other hand, said that the Minister of Finance should abide by and pledge for a specific period that the budget will be spent correctly and ensure that errors in the current previous budget are addressed and those responsible for violations in the budget are held accountable. The minister must also pledge to employ Kuwaitis and pay the frontliner bonus and vacation allowance immediately. He demanded that teachers be included in the vacation allowance and give them one month for every five years of service.
The Minister of Finance said they have provided aid to the Budgets Committee, and pledged before the Deputy Al-Muwaziri, the parliament, and the nation to address the existing violations, as well as the number set for hiring, disbursing the frontliners, and allowances for selling vacations. Regarding the Finance Minister’s statement that the average per capita income in Kuwait is 1500 dinars, Hassan Jawhar said it should include the sector that receives less than the average in order to direct support to it, which is not included in the budget. MP Jawhar added that the government should explain procedures to finance housing projects.
Hamad Al-Matar, on the other hand, remarked that the Kuwaiti people pay indirect taxes, as they seek service from private instead of government hospitals. Likewise, in education, they go to private schools, and thus they also pay taxes.
Meanwhile, Mubarak Al-Hajraf called for a real program of work for the government in line with the magnitude of this budget. He commented that independent bodies follow the state and have independent budgets, but their real revenues do not match their budget. Moreover, Thamer Al-Suwait called for support of every budget consolidation, pointing out that only 28 entities are committed to employment.
Accordingly, the Council approved the final accounts of some independent bodies and the number of their projects—5 for the fiscal year 2020-2021 by a majority of 55, and 3 disagreed, as the vote was a name call, and was referred to the government. Representative Ahmed Lari said that the final accounts are more important than budgets, because the evaluation and what has been spent are recorded.
MP Al-Azmi said the government is supposed to answer the budget only with a final account, suggesting presenting the budgets in the month of May instead of approving them at the end of the session so that the government does not come to bargaining as long as a new approach is made. MP Dr. Hassan Gohar said that the vote on the budget conveys a message about initiating a new era and facing a very dangerous challenge, especially of reformist nature. Representative Khalil Abel said that there are funds seized with the Petroleum Corporation that were supposed to be transferred to the state treasury instead of Barbsa. Abel warned the minister of oil sector mafias. Also, Hamad Al-Matar said that the Kuwaiti Fund for Development in its final account, 39 million dinars, will go to housing care, and which he believes is vital for approval. He indicated that the infringement on public money will not be subject to a statute of limitations and the approval of the accounts does not mean that the accounting has ended in any upcoming budget that the retirees will have a share and there will be a temporary committee that specializes in them. On the other hand, Saleh Ashour stressed that it is vital to adhere to the constitutional date, which is the beginning of April, and the government should not transfer between the doors because it means the budget is discretionary, and the issue of the covenant is important.
The Council approved recommendations that oblige the government to prepare a draft budget and refer it to the Council two months before the fiscal year. The government presents its plan to diversify non-oil sources of income and provide the Council with what has been done regarding the issues of assaulting public funds and Kuwaitization of jobs. The Budgets Committee shall notify the Speaker of the Council after the expiry of the deadline for referring the budgets and final accounts to discuss the matter in the Council and invite the Head of the Audit Bureau to a hearing in December.
In addition, the Council approved the transfer item between the budget chapters of ministries and government departments for the fiscal year 2021-2022 with a majority of 55, one opposition and two abstentions, as attendance was 58.
MP Saleh Ashour said there are government agencies that do not provide the Audit Bureau with official documents to examine their budgets. Hassan Gohar said that this is an significant plan to reform the covenant’s account, recalling the role of former MP Riad Al-Adsani in addressing this file and what was done to the government and the budgets committee. He added that any official who does not adhere to budgets must be held accountable until the matter reaches dismissal, calling for the opening of private and confidential accounts in the sovereign ministries.
On the other hand, Representative Dr. Khalil Abel mentioned the importance of awareness of the covenant account to close it, questioning the work with patients who are being treated abroad and needing funds to complete their treatment, as well as students abroad. He said that a mechanism must be found to deal with these cases in the event the covenant account is closed.
Furthermore, Representative Osama Al-Shaheen stressed that reducing the pledge account is a great achievement, as it was reduced from more than two billion to one billion, and finally 400 million.