Kuwait 2018/2019 budget deficit narrows on higher oil prices

Kuwait’s budget deficit narrowed to KD3.3bn ($11bn) in the fiscal year that ended in March, helped by higher than expected oil prices, the finance ministry said on Monday.

The oil-rich Gulf state had registered a KD4.8bn deficit in the previous fiscal year, 2017-18.

State revenue was KD20.5bn in the year to March 31, 2019, compared to the KD15bn that had been projected. That was more than the KD16bn of revenue generated in 2017-18.

An average Kuwaiti crude oil price of $68.62 a barrel during 2018-19 was 37 per cent higher than the $50 a barrel anticipated in the budget.

Oil revenue increased 29 per cent year-on-year to KD18.4bn and non-oil revenue rose 24 per cent year-on-year to KD2.1bn.

Kuwait has projected a KD7.7bn deficit and spending of KD22.5bn for the current fiscal year.

The deficit is calculated after 10 per cent of revenue is transferred to a future generations fund managed by the state Kuwait Investment Authority.

Kuwait’s fiscal year starts on April 1 and ends on March 31.