Salary Deficit Increases Necessity For Approval On Public Debt

The government “placed the approval of the public debt law at the top of its priorities by necessity, if it fails to pass in the National Assembly during the current legislative term, which is expected to end this September,” Al-Rai daily said, quoting informed sources.

The government had previously approved the first public debt law in 1987 and the second in 1998 by two decrees of necessity,” noting that “the approval of the current draft by decree of necessity also enjoys broad legal support.”

The daily, according to sources, that “the crisis of liquidity scarcity in the public budget threatens government salaries next December, what increases the merit of this approach.”

Sources pointed out that “the option to purchase additional shares from the General Reserve Fund to the Future Generations Fund is no longer available, given that the stock of the listed shares has already run out, and that the current liquidation of assets is detrimental to the state’s returns on investment by virtue of the great pressures upon the local and international markets due to the coronavirus pandemic.”

The daily added,  “it is not possible to bet on a rise in oil prices in the next three months to strengthen the budget, which constitutes an additional justification for the option of approving the public debt by decree of necessity, even if the issue was discussed during the session of the current council.”

The sources stressed that “the government’s options are narrow and public debt must be approved, as it is necessary to avoid a salary deficit.”

 

SOURCE : TIMES KUWAIT

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