Kuwait on Monday announced a state budget for the year ending on March 31, 2019, that projects spending at KD20bn ($66.7bn) and revenues at KD15bn.
The Kuwaiti finance minister Nayef al-Hajraf said the budget would be based on an average oil price of $50 per barrel, and that the deficit would be financed by borrowing and using reserves.
The KD5bn deficit would be before the transfer of 10 per cent of revenues to Kuwait’s sovereign wealth fund.
The budget deficit for the current fiscal year, which ends on March 31, 2018, was estimated at KD6.556bn before the 10 per cent deposit into the sovereign wealth fund, according to a calculation by Reuters.
Hajraf said that subsidies are projected at KD3.432bn of the budget.
The budget for the current fiscal year was estimated based on an oil price of $45.
Oil revenues are expected to reach KD13.3bn, up from KD11.7bn a year ago. Non-oil income is projected to remain almost flat at KD1.6bn.