|
Korean Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
|
| View previous topic :: View next topic |
| Author |
Message |
Octavius Hite
Joined: 28 Jan 2004
Location: Househunting, looking for a new bunker from which to convert the world to homosexuality.
|
 Posted: Tue Nov 08, 2005 10:38 pm Post subject: Kuwait at odds on spending windfall |
 |
|
I'm not sure how this makes me feel, but I do know that I would like to be getting a cut of this:
http://english.aljazeera.net/NR/exeres/E0D315EC-F899-4C4B-A299-99DE055C5DC1.htm
| Quote: |
With soaring oil prices projected to swell state coffers by $26 billion this year, Kuwaiti authorities face mounting pressure to distribute some of the windfall as cash handouts to the Gulf state's wealthy population.
Under proposals being pushed by lawmakers, each family in the tiny energy-rich emirate would receive a cash grant of 10,000 dinars ($34,000).
The government has made clear its strong opposition to the plans, which come on top of thousands of dollars in handouts already agreed upon and which are likely to fan resentment in consumer nations over the high cost of fuel.
But legislators, who are up for re-election barely 18 months away, are determined to press ahead with the proposals and are to convene in special session next week.
Two versions of the plan are being canvassed ahead of the 16 November session.
The first, championed by veteran tribal member of Parliament Khalaf al-Enezi, would see each family receive the $34,000 as a grant.
The second - advocated by another tribal lawmaker, Daifallah Buramia - would see the money handed out to write off bank loans with compensation for families that have not taken out loans.
In defence of his proposal, Buramia said it was better to spend the money on Kuwait's citizen population of just under a million than to spend it on debt forgiveness for historic foe Iraq as the government is proposing
"Distributing our money to our people is far better than granting it to Iraq and other states who stood against Kuwait" after Saddam Hussein's 1990 invasion, the MP said.
Each proposal is budgeted to cost the government up to $6 billion, a fraction of the $30 billion surplus accumulated over the past six fiscal years, let alone the record $26 billion windfall that analysts expect the government to achieve this year.
Buramia has secured the backing of at least 28 MPs in the 49-seat parliament, enough to force the special session but short of a majority in the legislature in which the 16 cabinet ministers also have a vote.
Prime Minister Sheikh Sabah al-Ahmad al-Sabah, who has demanded sweeping reform of Kuwait's ultra-generous welfare state, bluntly opposed the idea of the new handouts, saying: "It will never be accepted."
Al-Sabah's government has the power to reject the plans even if they secure a majority, but parliament can override the veto with a two-thirds majority.
"What is happening in parliament constitutes a threat to national security and the future of Kuwait"
This year, the Kuwaiti government, which has overseas assets estimated at more than $100 billion that do not figure in the state budget and are believed to generate between $3 billion and $6 billion a year, has made a raft of payouts in additional social expenditure.
Under pressure from parliament, the government agreed to pay each citizen a grant of $680 and a monthly salary increase of $170. It also agreed to give each family an allowance of $6800 in free power and water.
The total cost of those payments is estimated at more than $3 billion.
The government also bowed to parliamentary pressure this summer to modify the social security law - already one of the most generous in the world - so that an additional $750 million is spent on pensioners.
Some MPs are pressing for a further amendment of the law to exempt pensioners from paying interest on their loans at an estimated cost of $750 million.
The Gulf emirate provides a cradle-to-grave welfare system to its citizens who pay no taxes and receive most public services either free or at heavily subsidised rates.
More than 90% of the national workforce of 300,000 are employed in government jobs with higher pay and shorter working hours than in the private sector.
Critics say any greater spending on Kuwait's pampered citizens threatens to call into question the future of a country that depends heavily on a large and disenfranchised expatriate workforce.
"What is happening in parliament constitutes a threat to national security and the future of Kuwait," said a report from leading analysts Al-Shall Economic Consultants.
|
|
|
| Back to top |
|
 |
mindmetoo
Joined: 02 Feb 2004
|
| Posted: Thu Nov 10, 2005 9:44 pm Post subject: |
|
|
| Alberta seems to be in much the same position. And Canada as a whole. What to do with large, year on year, budget surpluses. |
|
| Back to top |
|
|
Kuros
Joined: 27 Apr 2004
|
| Posted: Thu Nov 10, 2005 9:50 pm Post subject: |
|
|
| Quote: |
In defence of his proposal, Buramia said it was better to spend the money on Kuwait's citizen population of just under a million than to spend it on debt forgiveness for historic foe Iraq as the government is proposing
"Distributing our money to our people is far better than granting it to Iraq and other states who stood against Kuwait" after Saddam Hussein's 1990 invasion, the MP said.
Each proposal is budgeted to cost the government up to $6 billion, a fraction of the $30 billion surplus accumulated over the past six fiscal years, let alone the record $26 billion windfall that analysts expect the government to achieve this year. |
Except that Iraq is under new leadership of late! They should forgive Iraqi debt and do the hand outs to their population. They have enough money. Jesus, they could even do something brilliant like donate it to Pakistani earthquake relief or sink the money into education or invest it into corporate infrastructure. |
|
| Back to top |
|
|
Hater Depot
Joined: 29 Mar 2005
|
| Posted: Thu Nov 10, 2005 10:15 pm Post subject: |
|
|
| I forget what the economics term for this is. But it's the reason that so many countries, which have just one major resource that is hugely valuable, are also filled with poor and oppressed people. It's too easy for the rulers to buy off the populace, and they never invest in diversifying their economy. When the oil runs out all of these oil-based kleptocracies are going to be shit out of luck. |
|
| Back to top |
|
|
Pligganease
Joined: 14 Sep 2004
Location: The deep south...
|
| Posted: Thu Nov 10, 2005 10:50 pm Post subject: |
|
|
| mindmetoo wrote: |
| Alberta seems to be in much the same position. And Canada as a whole. What to do with large, year on year, budget surpluses. |
With all the talk about the sickeningly high tax rates, why don't they lower taxes? |
|
| Back to top |
|
|
mindmetoo
Joined: 02 Feb 2004
|
| Posted: Fri Nov 11, 2005 5:52 am Post subject: |
|
|
| Pligganease wrote: |
| mindmetoo wrote: |
| Alberta seems to be in much the same position. And Canada as a whole. What to do with large, year on year, budget surpluses. |
With all the talk about the sickeningly high tax rates, why don't they lower taxes? |
They have a lot. When you look at income tax, someone in Ontario isn't being taxed any more than someone in New York State or California. GST/PST throws things a bit out the window, mind you.
The Canadian Federal government, since the Paul Martin days, has managed these surpluses by simply taking an extremely pessimistic view of the performance of the Canadian economy. "Hmmm economists are saying 4% growth but we'll budget for 3% growth." Previously politicians have always budgeted around pie in the sky growth figures, assuming the voting public would be lulled in cow like complacency. "Yes, the Canadian economy will grow like an Asian Tiger..." |
|
| Back to top |
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
