Deficit seen at KD 1.2 bln
KUWAIT CITY, Jan 6: The Ministry of Finance last November recorded a before deducting the 10 percent set for future generations, reports Al- Rai daily quoting minister sources. The sources pointed out the revenues of the general budget was about 14.2 billion dinars in the past eight months, compared to expenditures of about 14 billion, pointing out that after deducting the percentage allocated to the reserve of future generations, the general budget will run into a deficit of about 1.2 billion dinars. The sources pointed out the oil revenues since the beginning of the current fiscal year and until the end of last November was about 13 billion, while non-oil revenues amounted to about 1.2 billion.
“The budget deficit was expected to rise in December compared to November, with government agencies providing revenues and expenses this month, which is expected to be driven by declines in oil prices during December compared to previous months. The oil sales since the beginning of the year are about 1.55 billion dinars.
The sources pointed out that these data do not represent the expenditure of the period accurately because of the delay of many government agencies to transfer data on salaries from the integrated civil service to the government financial systems as well as the delay in the introduction of expenses for the external offices of some government agencies, which are subject to accounting until the end of the period, indicating that these figures reflect the internal monetary value of the movement of the budget for this period. Kuwait’s budget recorded a surplus of KD 2.2 billion during the first six months of the fiscal 2018-2019, following the sharp rise in the price of a barrel of oil, which exceeded the $80 barrier during September.
“The recovery of world oil prices in the first half of this year’s budget has generally supported Kuwait’s oil revenues, while the decline in recent months has negatively impacted revenues,” sources said, adding that the highest average recorded in Kuwait’s budget for the oil price since the beginning of this fiscal year until last November was about $73, the lowest average price of about $70, while expected to see the average price further decline during the last month. The sources added that the “financial” indicators indicate that if the price of a barrel of oil during the four months of the current fiscal year reach $52, the budget is likely to record a total deficit for (2018 /2019) of 3 billion dinars, after proportionate deduction of the reserve for future generations