CABINET SUBMITS BUDGET BILL FOR ASSEMBLY APPROVAL
KUWAIT CITY, Jan 26: The Kuwait Ministry of Finance today announced the draft government budget for the State of Kuwait for the coming fiscal year, which starts April 1, 2021 and ends on March 31, 2022. The budget forecasts 10.9 billion in revenue (+45.7% vs current budget), plans 23 billion in expenditure (+6.9% vs current budget), and projects a deficit of KD 12.1 billion (+13.8% vs the budgeted deficit for the current year ending on March 31st of KWD14.0 billion). The Kuwait Minister of Finance H.E. Khalifa M. Hamada said: “The country’s balance sheet is exceptionally strong, bolstered by our Future Generations Fund and one of the lowest debt to GDP ratios in the world. However, the State’s budget is not immune to the global challenges brought on by the Covid-19 pandemic and lower oil prices. We are in a transitional phase that requires concerted efforts for economic recovery and growth.
However, the cabinet is committed to implementing its development projects, with capital expenditures amounting to 3.9 billion KD, an increase of 20% from the current budget. We look forward to more cooperation and collaboration with Kuwait’s Parliament to introduce and amend more laws that will benefit and improve our fiscal framework, and to empower Kuwait’s economy.”
21/22 Budget highlights
Revenue: Total projected revenue: KD10.9 billion, representing an increase of 45.6% compared to the current year’s budget.
Non-oil revenue: 17% of total revenue.
Expenditure: Budgeted expenditure: KD23 billion
Salaries and Subsidies: 71.6% of total expenditure
Capital Expenditure: 15% of total expenditure, representing a 20% increase compared to the current year’s budget.
Other Expenses comprise 12%
Fiscal Balance: KD12.1 billion fiscal deficit, representing a decrease of 13.8% compared to the forecasted deficit in the current year’s budget.
Break-even point: USD 90/barrel. The Ministry of Finance said Monday, that the expected deficit for the fiscal year 2021-2022 is estimated at KD 12.1 billion (around US 39 billion), down 13.8 percent from the current budget, which ends on March 31.
In a press release on the country’s budget, the ministry noted that total expenditures for the next fiscal year are estimated at KD 23 billion (about US 75 billion) is based on an average price estimated at USD 45 per barrel of Kuwaiti oil. The ministry added that the total expected revenues during the 2021- 2022 budget are estimated at KD 10.9 billion (about USD 33 billion), of which about KD 9.12 billion dinars (USD 29.7 billion dollars) are oil revenues, 62 percent higher than the current budget, which ends on March 31, while Non-oil revenues amounted to KD 1.8 billion (about USD 5.9 billion).