|18 February, 2020

Kuwait turns to deficit in 10 months

Kuwait’s budget deficit amounted to $7.43bln in the first 10 months of fiscal year 2019/2020

Image used for illustrative purpose. Kuwait City at sunset.

Image used for illustrative purpose. Kuwait City at sunset.

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Kuwait’s budget deficit amounted to KWD 2.26 billion ($7.43 billion) in the first 10 months of fiscal year 2019/2020 after transferring the Future Generations Fund’s reserve.

The country has registered a surplus of KWD 1.59 billion during the first 10 months of fiscal year 2018/2019 after deducting the Future Generations Fund’s reserve which represents 10% of the country’s total revenues, recent data by the Ministry of Finance revealed.

In the meantime, around KWD 1.43 billion was transferred to the Future Generations Fund’s reserve over the April-January period, down by 1.76% annually from KWD 1.70 billion.

Revenues shrank by 15.99% from KWD 17.01 billion to KWD 14.29 billion, accounting for 90.4% of the KWD 15.812 billion estimated income for the full year 2019/2020.

In addition, Kuwait’s expenditures and commitments soared to KWD 15.13 billion in the 10-month period of FY19/20 when compared to KWD 13.72 billion a year earlier, representing about 67.2% of expected expenditures of KWD 22.5 billion for the full fiscal year.

It is worth noting that the finance ministry had forecast a budget deficit of KWD 5.27 billion and revenues of KWD 15.81 billion for the current fiscal year, versus expenses of KWD 22.50 billion.

The Kuwaiti fiscal year starts in April each year and ends on 31 March the following year.

Source: Mubasher

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