(Bloomberg) — Kuwait’s budget deficit narrowed to 3.35 billion dinars ($11 billion) in the last fiscal year, down 31% from a year earlier on higher-than-anticipated crude prices and a rise in non-oil revenue, the Finance Ministry said.
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Revenue in the year ended March 31 rose to 20.56 billion dinars, while spending increased 13.5% to 21.85 billion dinars, the ministry said in a statement. Non-oil revenue jumped 24% to 2.13 billion dinars.
Kuwait Budget Highlights:
- Non-oil revenue grew for the second consecutive year, capital expenditure remained 14% and is expected to reach 17% during the current fiscal year to stimulate economic growth, Finance Minister Nayef Al-Hajraf said
- Oil revenue rose 29% to 18.4 billion dinars
- Wages and subsidies accounted for 75% of all spending
- By law 10% of revenue is transferred to the Future Generation Fund, managed by the Kuwait Investment Authority
- Budget gap will be financed by withdrawals from the state’s treasury
- Shortfall last year is Kuwait’s fifth consecutive deficit
- NOTE: Kuwait’s Parliament Approves Amended Budget With Wider Deficit
