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Kuwait records $17bn budget deficit at end of 2016

Kuwait records $17bn budget deficit at end of 2016

The country’s fiscal year is calculated from April 1 to March 31

Kuwait reportedly recorded a KD5.2bn ($17bn) budget deficit at the end of December 2016 suggesting it may post a smaller shortall than expected in its 2016-2017 fiscal year.

The figure was revealed in a report from the finance ministry’s economic team, according to Kuwait Times.

The ministry said it expected the deficit to fall slightly after government bodies closed some settlements.

It also said it expected the deficit to fall this month due to the launch of a new government finance management IT system.

According to the report, Kuwait will need KD6.1bn ($20bn) of funding for the 2016-2017 fiscal year, after deducting allocations to its state nest egg Future Generations Fund, which invest in assets outside of the country.

An extra KD3.5bn ($11.4bn) will be needed in 2017 and 2018, the publication said.

Kuwait is projecting a $28.9bn deficit for the financial year from April 1 to March 31.

The county is reportedly finalising plans for a dollar-denominated bond worth up to $10bn to meet its financing needs.

Read: Kuwait finalising plans for dollar bond sale – report

The government has also introduced increases to fuel, electricity and water prices but has been met with opposition from the country’s parliament.

Read: Kuwait MPs call for changes to constitution


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