Kuwait's cautious approach to spending

Recently released official statistics in the Gulf region reconfirm the traditional practice of underestimating revenues. The ultra-conservative practice denies authorities the opportunity to set aside funds for specific projects.

Similar to Qatar, Kuwait's fiscal year commences in April. However, Kuwait stands out among Gulf Cooperation Council (GCC) countries by setting aside 10 per cent of annual Treasury income for the Reserve Fund for Future Generations. The plan aims at ensuring a sustainable quality of life for Kuwaiti nationals for years to come.

Kuwait's budget surplus for 2008-09 amounted to $9.5 billion (Dh34.86 billion) on the back of firmer income together with restricted spending. To be sure, the figure compares unfavourably with a surplus of $32.4 billion achieved in the previous year.