There areundoubtedly several important issues before the National Assembly such as thebedoons' law, new cities and others, but I as a Kuwaiti citizen hope theparliament looks at the issue of government spending among its agenda. Thistopic is very important for Kuwait's interests and international reputation, soa joint national project between the government and the Assembly should belaunched to control public expenditure within a specified period of time.
The basis of thisproject is to ensure new projects are not launched unless they have aguaranteed return, and reduce spending on other non-priority areas withadministrative and parliamentary supervision over spending. I think, forexample, that building new cities without services for the population is not asimportant as new roads and repairing damaged streets.
Reports have beenspreading for days about the possibility of rain, and although rain is liked bypeople, what people remember is that last year, rains inundated parts of Kuwaitand roads were lined with submerged cars, raising concern. These matters mayseem small, but are a major issue for the public. I think it is better tocriticize the government for the delay in the completion of projects than tolose those projects in full because of mismanagement or lack of completion.
The newgovernment spending project does not aim at reducing public expenditure. Howmuch society needs various projects and differentiating among them on the basisof their collective benefit should be considered, and only then spending onthese projects should be determined.
For example, the5 percent VAT approved by the six-nation Gulf Cooperation Council (GCC) fornearly four years has not been implemented in Kuwait, but spending efficiencyis better than resorting to tax increases to reduce public deficit. I believethat the efficiency of government spending is a guarantee for economic growthof the state and makes it immune from potential pressures due to globaleconomic conditions. It is perhaps the only remaining means of financialsustainability.
We tend to hearthat the reason for general waste is salaries, which makes up nearlythree-quarters of spending in Kuwait, but this should not be the reason formore spending. I know that the issue of government spending in many countriesaround the world is difficult and burdened by complexities, because there aremultiple ways of spending and decentralized decision-making, but remainsessential to avoid possible risk from global trade tensions and uncertainty inoil prices.
Because of largebudget deficits and reliance on volatile commodity prices, government spendingneeds to be addressed with a more strategic approach. The decline in oil priceswill not only affect the Gulf region, but the entire Arab region, especially asthe Gulf countries are the most important trading and investment partners ofall non-oil exporting countries. So, focusing on spending efficiency isimportant.
These factorsrequire the importance of continuing and accelerating the pace of financial andstructural reforms to increase economic resilience and stimulate the growth ofthe private sector to be a partner in development and not only a beneficiary.The optimal use of financial resources is not just a wish but an irreplaceablechoice. I believe that achieving efficiency is one of the issues that requiresconsensus between the legislative and executive branches of the country.
By Muna Al-Fuzai
muna@kuwaittimes.net