DUBAI: Kuwait’s government budget surplus reached KD8.97bn ($31bn) in the first six months of this fiscal year as expenditure remained well below the initial plan, preliminary finance ministry figures showed yesterday.
The major oil exporter’s public spending was KD6.12bn in
April-September, below KD11.61bn originally planned for the period. It was equivalent to only 26 percent of the KD23.21bn spending plan for the 2014-15 fiscal year.
Kuwait’s expenditure has fallen behind its budget plans repeatedly in recent years as political disputes and bureaucracy have delayed budget approvals in parliament as well as the implementation of
much-needed investment programmes.
State revenue was KD15.09bn in April-September, well above the KD10.03bn originally projected for the period. Oil income stood at KD14.20bn.
Kuwait has one of the strongest fiscal positions among the Gulf oil exporters; it needs a crude oil price of just $54 per barrel for its state budget to break even, according to the International Monetary Fund.
But its heavy dependence on oil income makes its economy more vulnerable to lower crude oil prices and output. Benchmark Brent crude touched $80.46 per barrel this week, its lowest level since September 2010; however, the average so far this calendar year is $104.20.
Analysts polled in September forecast Kuwait’s fiscal surplus at a robust 22.2 percent of gross domestic product in the current fiscal year and 17.8 percent in 2015-16. Reuters
