Monday, February 6, 2023

Kuwait government resigned for the second time this year

DUBAI, United Arab Emirates (NWN) – Kuwait’s government resigned on Monday for the second time this year, underscoring the small, oil-rich nation’s political problems.

The official Kuna news agency said Kuwait’s ruler Sheikh Nawaf Al Ahmed Al Sabah has received the government’s resignation notice. However, the report did not specify whether Sheikh Nawaf would accept the resignation offered by the country’s prime minister, Sheikh Sabah Al-Khalid Al Hamad Al Sabah.

Earlier, the government had resigned in January. On Sunday, Sheikh Nawaf apologized to opposition political members for resolving the ongoing impasse in the country’s government.

Kuwait, an exceptionally wealthy country with its oil reserves, has struggled in recent years to balance its budget and encourage its population into the private sector. From its cradle to serious social benefits, the treasury has been decimated, challenging the nation during the recent fall in oil prices.

Kuwait’s unusual combination of an emir-appointed government and elected parliament often leads to conflict that analysts say impedes the country’s economic and social progress. Parliament can introduce laws and question ministers, although the Emir of the country has final authority and members of the ruling family hold senior positions.

Last year, ratings agency Moody’s downgraded Kuwait for the first time in its history as the coronavirus pandemic burned a hole in the country’s finances.

Even with the exchequer rapidly depleting, the government has no legal framework to allow deficit-spending to exceed its current limit of $33 billion without parliamentary approval. MPs have strongly opposed raising the loan limit, fearing that corruption will lead to money laundering.


Nation World News Desk
Nation World News Desk
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