Kuwait – Mubasher: In the budget for fiscal year 2016/2017, Kuwait’s revenues are estimated at around KWD 10.4 billion ($34.64 billion), of which KWD 8.8 billion will be oil revenues projected at $35 per barrel (pb), said Anas Khalid Al Saleh, Kuwait’s deputy prime minister and who doubles as the minister of finance, on Sunday.
Non-oil revenues were estimated at around KWD 1.6 billion Dinars, while expenditures are expected to reach KWD 18.9 billion, he said, adding that the deducted amount for the Future Generation Fund is estimated at around KWD 1.05 billion, resulting in a fiscal balance deficit for 2016/17 of KWD 9.5 billion.
Speaking before the Kuwaiti parliament, Al Saleh revealed that Kuwait will finance its budget deficit by borrowing up to KWD 5 billion, of which KWD 2 billion will be from the domestic market in the form of conventional and Islamic instruments.
The government will also borrow up to KWD 3 billion ($10 billion) in US-denominated bonds from international markets, in both conventional and Sukuk issuances, the top official stated.
“The present Fiscal Report of the minister of finance for the fiscal year 2016/2017 comes during exceptional economic and fiscal circumstances. Despite the State’s strong current financial position, we now face serious challenges that put the stability and sustainability of our public finances at risk, and impose the need to rationalize spending, diversify the sources of public revenues, restructure our national economy, and lastly, create an efficient business environment able to attract more foreign direct investments whilst providing job opportunities for Kuwaitis entering the labor market,” a statement by the ministry has said.
It added that that ambition will require solid coordination and cooperation between the executive and legislative Kuwaiti bodies to create the optimal environment for success.
