KUWAIT CITY, Oct 2: Many economists have criticized the idea of granting KD 20 for each citizen who holds a driving license as compensation for the fuel price hike, pointing out that cancellation of the new prices is better and the cost is lower, reports Al-Jaridah daily.
Some economists are of the view that this step means the government is not serious in enforcing the economic reform.
Commenting on the issue, member of the Supreme Council for Planning Ahmed Baqer asserted the decision to raise the prices of fuel was not right from the beginning.
He accused the government of “jumping over” many actions that were supposed to be taken before touching the pockets of citizens in order to convince them to participate in the reform processes willingly. Commercial Bank of Kuwait Board Chairman Ali Al-Mousa said that mending the budget deficit by raising the prices of fuel and then addressing the consequences of the decision by compensating citizens is not good at all. He added if the government pays financial compensation, this will be due to political pressure.
Member of the Board of Directors of Kuwait Chamber for Commerce and Industry (KCCI) Abdulwahab Al-Wazan considers offering subsidy to citizens as political consolation, not a serious solution. He stressed that going back to where the country was before raising the prices of fuel might be better.
Another KCCI Board Member Abdullah Al-Mulla finds the compensation hilarious pointing out that it is better and cheaper to cancel the fuel price hike. He said the rationalization of many items will make Kuwait save more money than the fuel price hike.
Chairman of the Industrialists Union Husain Al-Khorafi said it is “black comedy” when MPs who wasted enormous amount of money for medical tourism or overseas treatment are crying out for a few dinars that the government has taken from citizens.