On 10 July Kuwait’s parliament approved a budget for the financial year 2002-03 which runs from 1 April 2002 to 31 March 2003. Expenditures are estimated at KD5,430mn ($18,016mn) compared with KD5,274mn ($17,498mn) for the financial year 2001-02, representing a rise of 2.96%. Total revenues are projected at KD3,536mn ($11.733mn) compared with KD3,832mn ($12,712mn) in 2001-02, a fall of 7.7%. Oil revenues for 2002-03 based on a conservative oil price assumption of $15/B are projected at KD2,984mn ($9,901mn) as against KD3,263mn ($10,826mn) the previous year, a fall of 8.5%. Non-oil revenues are expected to fall by 3.0% from KD569mn ($1,886mn) in 2001-02 to KD552mn ($1,832mn) in 2002-03. This leaves a deficit of KD1,894mn ($6,283mn), 3.7% higher than last year’s deficit of KD1,826mn ($6,057mn). The Reserve Fund for Future Generations (RFFG) which is managed by the Kuwait Investment Authority receives 10% of all revenues, amounting to KD354mn ($1,173mn). The budget was passed by 38 votes to five, with one abstention, but many opposition MPs criticized the government for failing to implement economic reforms to diversify state revenues and reduce reliance on oil revenues.

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