As the liquidity of the General Reserve Fund is depleted, this caused a shift to tap into the reserves for the Future Generations Fund, to fill the budget deficit, to that effect the government submitted a bill to Parliament, allowing it to transfer KD5 billion annually from the fund, Al Qabas reported.
This move raised a storm of anger in Parliament with more than 18 MPs declaring their rejection of the proposed law, considering it as part of the mismanagement of the economic situation and waste of public money.
The draft law, of which Al-Qabas obtained a copy, stipulates that the government may take an amount not exceeding KD5 billion annually to meet any deficit in the general reserve.
The explanatory memorandum of the project stated that “the economic conditions that Kuwait is going through due to the sharp decline in oil revenues, which are expected to continue for many years, which may negatively affect the state’s general reserve and the cash liquidity scarcity, causing the consequent deficit in financing budgets. The current draft law has been prepared to amend some provisions of Decree Law 106 of 1976 in the matter of reserves for future generations, in order to meet this deficit in the state’s public budgets.”
About 15 MPs said that the government is “incapable and unable to manage state affairs” and that it “instead of providing practical solutions to get out of the financial distress that they are facing. They go directly to the Generations Fund, and this is absolutely unacceptable. ”
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