Kuwait forecasts $7bn smaller deficit in 2017-2018

Kuwait is reportedly forecasting a roughly $7bn smaller budget deficit in its 2017-2018 fiscal year due to an increase in state revenues following the rise in oil prices since the end of last year.

Kuwait Times cited chairman of the parliamentary budgets and final statements committee, MP Adnan Abdulsamad, as saying total state revenues would be 30 per cent higher in the new budget, beginning April 1 to KD13.3bn ($43.4bn).

Total expenditure is expected to increase around 5 per cent to total KD20bn ($25.4bn) with a KD7bn ($22.89bn) deficit, he said, according to the publication.

Around KD1.3bn ($42.bn) will be deposited in the country’s future generations reserve fund.

The country projected a $28.9bn deficit for the current fiscal year, ending on March 31.

Read: Kuwait records $17bn budget deficit at end of 2016

Kuwait’s government has introduced austerity measures, including fuel price increases in September, to reduce the size of its deficit but has faced stiff opposition from the country’s parliament.

Last month, draft bills were approved for debate that would reverse the fuel price hike and soon to be introduced electricity and water rate increases for expatriates and businesses.

Read: Kuwait committee approves draft bill scrapping fuel, utility price increases