VZCZCXRO3333
PP RUEHDE
DE RUEHKU #2896 2001158
ZNY CCCCC ZZH
P 191158Z JUL 06
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC PRIORITY 5839
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY

C O N F I D E N T I A L KUWAIT 002896 
 
SIPDIS 
 
NOFORN 
SIPDIS 
 
STATE FOR NEA/ARP 
 
E.O. 12958: DECL: 07/19/2016 
TAGS: PGOV EFIN KU NATIONAL ASSEMBLY
SUBJECT: PARLIAMENT APPROVES NEW PUBLIC AND AMIRI BUDGETS 
PRIOR TO SUMMER RECESS; NEW "NATIONAL ACTION BLOC" FORMED 
 
REF: KUWAIT 2871 
 
Classified By: CDA Matt Tueller for reasons 1.4 (b) and (d) 
 
¶1.  (U) On July 18, Parliament held its final session before 
recessing for the summer.  The assembly is scheduled to 
reconvene on October 30.  During the session, Parliament 
voted 39 to 10, with two abstentions, in favor of the 
2006-2007 public budget previously approved by the Cabinet. 
The 10.866 billion KD ($37.57 billion) budget exceeds 
expected revenues by 2.346 billion KD ($8.11 billion).  The 
deficit is primarily due to "a seven-billion dollar payment 
to the state pension agency," the AFP reported.  As required 
by Kuwaiti law, ten percent of the budget (852 million KD) is 
allocated to the Kuwait Fund for Future Generations.  The 
most expensive item in the budget is "expenditure on salaries 
and wages," estimated at 2.72 billion KD ($9.41 billion). 
The majority (95%) of Kuwait's employed citizens work in the 
public sector. 
 
¶2.  (C/NF) The Parliament also approved a Government proposal 
to increase "allocations" to the Amir from eight million KD 
($27.66 million) to fifty million KD ($172.9 million) per 
year.  According to Dr. Mohammed Al-Mquate', a constitutional 
expert, the allocations include not only the Amir's personal 
salary, but also the salaries of the estimated 1,500-1,700 
other members of the ruling Al-Sabah family who are divided 
into four categories: 1) descendants of Mubarak Al-Kabir, the 
founder of modern Kuwait; 2) descendants of Mubarak 
Al-Kabir's brothers; 3) descendants of Mubarak Al-Kabir's 
uncles; and 4) all other Al-Sabah.  Al-Mquate' said the 
salaries for each category are determined by the Amir.  Dr. 
Nasser Al-Sane, a pro-reform Islamist MP, told Poloff prior 
to the vote that although this was a sensitive issue, there 
was considerable opposition in Parliament to increasing the 
allocations.  That the proposal passed unanimously suggests 
MPs were ultimately unwilling to confront the Government over 
this issue, possibly due to the recent concessions the 
Government made to pro-reform MPs (reftel). 
 
¶3.  (U) Meanwhile, a new National Action Bloc (NAB) has been 
formed in Parliament by seven liberal, pro-reform MPs.  The 
new bloc is headed by former Deputy Speaker Mishari Al-Anjari 
and includes MPs Mohammed Jassem Al-Sager, Faisal Al-Shaye, 
Ali Al-Rashed, Saleh Al-Fadhala, Abdullah Al-Roumi, and Ahmed 
Al-Mulaifi.  There are three other blocs in Parliament: the 
Popular Action Bloc (PAB), an alliance of eight pro-reform, 
independent MPs headed by Ahmed Saadoun; the Islamic Bloc, 
headed by Walid Al-Tabtabaei and expected to include all 18 
Islamist MPs; and the Independent Bloc, expected to include 
12 pro-Government "service deputies."  The new membership of 
the Islamic Bloc and the Independent Bloc has yet to be 
formally announced.  In the absence of political parties, 
these blocs help MPs coordinate their legislative strategy 
with similarly-aligned colleagues, and in most cases the bloc 
votes as a group.  The 16 Cabinet Ministers, who serve as ex 
officio MPs, always vote as a bloc.  There are an additional 
four independent, government-leaning MPs, including the 
Speaker, who are not expected to join any parliamentary bloc. 
 
 
¶4.  (C/NF) Ahmed Deyain, an astute, liberal political 
analyst, told Poloff July 16 that the formation of the NAB 
was a significant development that would make coordination 
between pro-reform MPs easier.  Together, the NAB, the PAB, 
and the Islamic Bloc, whose members all support political 
reform, have a simple majority (33 seats) in Parliament and 
can effectively push through any legislation they agree on, 
Deyain argued.  Working through their respective blocs, 
pro-reform MPs will be able to more effectively coordinate on 
a shared reform agenda.  Deyain believed the loose alliance 
between liberal and Islamist MPs supporting political reform 
would remain together, despite some mutual recriminations 
during the recent elections, which Deyain attributed to 
normal political competition. 
 
********************************************* * 
For more reporting from Embassy Kuwait, visit: 
http://www.state.sgov.gov/p/nea/kuwait/?cable s 
 
Visit Kuwait's Classified Website: 
http://www.state.sgov.gov/p/nea/kuwait/ 
********************************************* * 
TUELLER