Kuwait mulls scrapping expat subsidies

[somebozo]

Kuwait mulls scrapping expat subsidies
Kuwait mulls scrapping expat subsidies - Politics & Economics - ArabianBusiness.com


Kuwaiti lawmakers have called on government to abandon subsidisation of expat water and electricity fees
By Courtney Trenwith
Monday, 11 March 2013 10:57 AM

A large group of Kuwaiti lawmakers are calling on the government to scrap expats’ subsidies for essential services including electricity and water, claiming the government can no longer afford them, according to Kuwait Times newspaper.

The move would increase the average electricity bill for an apartment to as much as KD100 (US$350) per month – more than the salary of many expats who work in low paid jobs, such as maids.

But eight Independent MPs claim the government is wasting KD6-12 billion each year on providing subsidized services, including fuel, electricity and water, to all Kuwaiti residents.

They want Kuwaiti nationals to receive the services free and expats to pay full price.

Expats make up about two-thirds of the oil-rich country’s 2.8 million people.

Electricity is charged at two fils per kilowatt hour, a tiny proportion of the 38 fils it costs to produce, while power prices have not increased since the mid-1960s, according to Kuwait Times.

The price of fuel also has not increased for 15 years and is one of the lowest in the GCC. The government says it spends more than KD1 billion annually in fuel subsidies.

The proposal follows a growing list of ideas from politicians targeting expats.

The government is considering increasing expats’ fees for medical services including medical checkups, surgeries and x-rays, it was revealed on Sunday.

While last month, lawmakers proposed reducing overcrowding at the country’s medical facilities by designating specific hours of the day that nationals and expats could seek medical assistance, in what some described as racist.

Under the plan, only Kuwaitis would be allowed to attend hospitals and clinics in the morning, while non-nationals would be treated only in the evening. Staff also would be segregated according to their nationality, while emergencies would be excluded from the plan.

2013 Arabian Business Publishing Ltd. All rights reserved.

 

[somebozo]

Kuwait mulls writing off $6bn in citizens' personal debt
Kuwait mulls writing off $6bn in citizens' personal debt - Personal Finance - ArabianBusiness.com

Under a draft law, gov't will purchase loans taken out prior to April 1 2008, and reschedule repayments while writing off interest
By Courtney Trenwith
Sunday, 3 March 2013 11:48 AM

Kuwaiti MPs will this week debate a motion to write-off the interest accrued on Kuwaitis’ loans from local banks taken out prior to the global financial crisis, estimated to cost the government US$6bn.

Under a draft law already approved, the government will purchase loans taken out prior to April 1 2008, and then reschedule the repayments while writing off the interest.

The proposal could affect tens of thousands of Kuwaitis.

The Kuwait Central Bank estimated the move would cost KWD1.7bn.

However, the legislation is yet to be fully approved after some MPs said it was unfair to Kuwaitis who were not affected by the financial crisis.

In a compromise, they suggested the government also pay KWD1,000 to every Kuwaiti who would not benefit from interest write-off.

Cabinet so far has indicated it does not support the proposed legislation due to the high cost, according to Kuwait Times.

2013 Arabian Business Publishing Ltd. All rights reserved.

 

[somebozo]

If these guys are good at something is wasting money that's all

Kuwait MPs table bill to hand citizens $17K each
Kuwait MPs table bill to hand citizens $17K each - People - ArabianBusiness.com


Proposal would grant thousands of dollars to each citizen, benefiting low income Kuwaitis
By Massoud A. Derhally
Wednesday, 23 January 2013 2:59 PM

Kuwait legislatures introduced a bill proposing the government grant each citizen KWD5,000 (US$17,755), arguing that low income citizens would benefit from the measure, Kuwait Times reported.

The bill also calls for the government to grant unemployed women an extra KWD300, the newspaper reported. If just one third of the Kuwaiti population was given the grant, it would cost the government at least KWD4bn (US$14bn), according to the paper.

Kuwait's government has already distributed KWD1,000 to its each of its citizens.

The oil rich emirate, which has one of the highest per capita incomes in the world, has been marred by a political face-off between parliamentarians and the government for several years, which has delayed economic reform, dampened growth, held up the country's privatisation programme and curbed investor appetite.

The restructuring of Kuwait Airways, the country's national carrier, has been delayed four years.

The country's economy is projected to shrink to 1.9 percent this year after growth slowed in 2012 to 6.3 percent, according to International Monetary Fund estimates.

2013 Arabian Business Publishing Ltd. All rights reserved.