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Reduce power, fuel, water subsidy – MP
June 16, 2015, 10:19 am

MP Nabil Al-Fadhel has submitted a draft law to reduce electricity, water and fuel subsidies for government establishments and their employees. The draft law suggests the country must estimate the actual cost of electricity and water consumption, as well as fuel prices each year without the subsidized value.

Also, it suggested canceling subsidy for electricity and water, indicating the ministries and their affiliated institutions and authorities must shoulder 100 percent the cost of the current subsidy on electricity and water.

Accordingly, the ministries, their institutions and authorities will be obliged to buy fuel needed for servicing each installation, vehicle, and machines of the government authorities. According to the draft law, concerned authorities or the ministry must prepare ration cards for electricity, water, and fuel services for each government authority.

The cards include data of government authority and the beneficiary employees based on job title stating the level of subsidy and expenditure of the authority, as per the draft law. The proposal prohibits giving up or passing subsidy from one government authority to another and the violation attracts punishment as per Law No 1/1993 concerning public funds protection.

Each ministry in charge of services is required to collect service fees directly from the beneficiary government authority at the end of month without delay to avoid accumulating dues. The concerned ministry in coordination with the government is required to cooperate with the government authorities to set regulations and conditions for implementing the draft law if approved.

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