Mubasher: The parliament of Kuwait has passed the country’s budget for the 2018-2019 fiscal year on Wednesday, expecting a huge deficit for the fourth consecutive year in line with the current shrinking economy, Arabian Business reported, according to AFP.
It is expected for Kuwait to have a deficit exceeding $21 billion (EUR 18 billion) or nearly 17.5% of the OPEC member's gross domestic product.
It is noteworthy that Kuwait’s accounting year begins on 1 April.
Several MPs in Kuwait accused the government during debate of not doing enough to "stop the squandering" of public funds and failing to implement reforms, AFP said, as reported by Arabian Business.
“The actual deficit may turn out to be lower than forecast if oil prices rise, with crude currently calculated at about $50 a barrel, $25 below market prices,” Arabian Business said.
Budget revenues are likely to reach $49.5 billion, 12% higher than last year's estimates, while spending is projected to total $71 billion, about 8.5% more than last year’s.
“After posting healthy surpluses for 16 straight years, Kuwait has posted a budget deficit in each of the past three years after oil prices began to slide in mid-2014,” Arabian Business noted, according to AFP.
It is noteworthy that oil income in Kuwait is estimated at $44.3 billion, based on a daily production of 2.8 million barrels.
