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Govt financially capable in all logical scenarios
KUWAIT CITY, Nov 1: For a long time and for many years, we often hear and read that the government will not be able to bear the costs of new graduates joining the labor market, and that there are hundreds of thousands of newcomers looking for government job, reports Al-Qabas daily. Most recently it was disclosed in the National Assembly about the possibility of the government bearing the costs of 500,000 new graduates over the next 15 years.
Government salaries in the final account for the year 2008-2009 were equivalent to 3.04 billion dinars, and the item of government salaries in the final account for 2020-2021 was 7.45 billion dinars. The government is still paying salaries, and Kuwait is in the best financial condition since liberation. We have reserves in the Future Generations Fund exceeding 700 billion, the largest in the Arab world despite the effects of the invasion, and our oil revenues exceed our spending due to global infl ation and the ongoing war between Russia and Ukraine, and we also have no significant debts, say sources.
The report said, “If we look at the most comprehensive item, which is salaries and the like, we will find 11.86 billion dinars, as in the year 2020- 2021. If we assume that this amount is doubled over the next 15 years to 24 billion dinars, we will find that 5% annually of the generations’ reserves, which is a very reasonable and acceptable annual return (approximately 11 billion dinars annually) will cover this large difference in salaries if a law is passed allowing an organized withdrawal from the future generation reserve in if there is a deficit.
“This withdrawal would enable Kuwait to pay salaries, even if they doubled if oil revenues remained the same. This will also enable the preservation of the volume of the generation reserve without developing it as required. “Thus, the happy and sad answer at the same time about the possibility of Kuwait absorbing all those coming to the labor market in the next 15 years with the current system itself, is yes, financially capable in all logical scenarios, as it has been able to do in the past twenty years.”