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Saturday , November 26 2022

Cabinet submits 22/23 budget proposal

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Deficit forecast down 74.2%

KUWAIT CITY, Jan 24: The Kuwait Ministry of Finance Monday released the State of Kuwait’s draft budget bill for the coming fiscal year, which starts April 1, 2022 and ends on March 31, 2023. The budget forecasts KD 18.8 billion in revenue (+72.2% vs current year’s budget), plans KD 21.9 billion in expenditure (-4.8% vs current budget), and projects a deficit of KD 3.1 billion (-74.2% vs the budgeted deficit for the current year ending on March 31st of KD 12.1 billion). The Minister of Finance, and Minister of State for Economics Affairs and Investments H.E. Abdulwahab M. Al-Rasheed said, “Next year’s budget projects higher revenue levels, however we were keen to maintain our cap on expenditure at KD 22 billion while maintaining healthy capital expenditure that is in line with previous years.” 22/23 Budget highlights

■ Revenue:
❍ Total projected revenue: KD 18.8 billion, representing an increase of 72.2% compared to the current year’s budget.
❍ Non-oil revenue: KD 2.1 billion, representing an increase of 15.3% compared to the current year’s budget.

■ Expenditure:
❍ Budgeted expenditure: KD 21.9 billion representing a decrease of 4.8% compared to the current year’s budget.

■ Expenditure breakdown:
❍ Salaries and Subsidies: 74.5% of total expenditure
❍ Capital Expenditure: 13.2% of total expenditure
❍ Other Expenses comprise 12.3%

■ Projected Fiscal Balance:
❍ KD 3.1 billion fiscal deficit, projecting a decrease of 74.2% compared to the forecasted deficit in the current year’s budget.
❍ Break-even point: An average price per barrel of USD 75 for the financial year.

Source: Ministry of Finance, The State of Kuwait
(Pending Parliamentary approval)

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