General budget closes March 31
KUWAIT CITY, March 24: The general budget ending March 31 for fiscal 2018/2019 will reach a deficit of KD 4.3 billion, compared to the budget of KD 4.84 billion for the fiscal 2017/2018, reports Al-Rai daily.
The sources pointed out that the fiscal deficit recorded for 2018/2019, includes the additional KD 1.3 billion appropriation which was finally approved for the ministries of oil and education, in addition to the planned quota of the Future Generations Fund, which is set at 10 percent.
According to preliminary forecasts, the deficit could be broken down to KD 1.95 billion from oil revenues, indicating that the deficit is likely to reach about KD 800 million, in addition to 1.3 billion additional credits, along with the reserve for generations, which will be approximately KD 2 billion.
The sources pointed out that the additional KD 1.3 billion appropriation which was finally approved did not affect significantly the general budget, as there are about KD 900 million adjustments made by the Ministry of Finance with the stakeholders, unlikely any unexpected jumps during the few days on the level of expenditure.
On the status of the financial budget until the end of February, the sources pointed out that the public revenues for the fiscal 2019- 2018 amounted to the end of last month about KD 18 billion, compared to expenses of nearly 18 billion, noting that the deficit recorded until the end of this period was KD 100 million. The sources explained that February does not usually give a final result on the direction of the final budget, where many government agencies at the end of the year to record expenses based on payments accrued to others, which are classified in March each year.
The sources pointed out that the Ministry of Finance does not expect any change that may occur in terms of expenditure on expectations, specifically with regard to the cost of registered subsidies until the end of fiscal year 2019-2018, noting that the Ministry of Finance approved the stabilization of prices of all types of fuel in April next rate is the same In March.
The sources pointed to the general budget came this year supported by good prices of oil during the year, and at rates that boosted the item of oil revenues, which constitute 95 percent of total revenues in Kuwait.
The 2018-2019 budget is based on the price of a barrel of oil at $50 a barrel, in line with the “fiscal” approach in the budget 2017/2018, which is estimated at $45 a barrel, where the average price of a barrel of oil during the first nine months of the budget 2017/2018 about $52. It is noteworthy that the Ministry of Finance expected to record the budget for fiscal year 2018/2019 financial deficit of KD 6.5 billion, after deducting the ratio of reserve for future generations.