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Kuwait 2018/2019 budget deficit narrows on higher oil prices

Kuwait 2018/2019 budget deficit narrows on higher oil prices

State revenue was KD20.5bn in the year to March 31, 2019, compared to the KD15bn that had been projected

Kuwait’s budget deficit narrowed to KD3.3bn ($11bn) in the fiscal year that ended in March, helped by higher than expected oil prices, the finance ministry said on Monday.

The oil-rich Gulf state had registered a KD4.8bn deficit in the previous fiscal year, 2017-18.

State revenue was KD20.5bn in the year to March 31, 2019, compared to the KD15bn that had been projected. That was more than the KD16bn of revenue generated in 2017-18.

An average Kuwaiti crude oil price of $68.62 a barrel during 2018-19 was 37 per cent higher than the $50 a barrel anticipated in the budget.

Oil revenue increased 29 per cent year-on-year to KD18.4bn and non-oil revenue rose 24 per cent year-on-year to KD2.1bn.

Kuwait has projected a KD7.7bn deficit and spending of KD22.5bn for the current fiscal year.

The deficit is calculated after 10 per cent of revenue is transferred to a future generations fund managed by the state Kuwait Investment Authority.

Kuwait’s fiscal year starts on April 1 and ends on March 31.

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