Kuwait Projects $22.4 Billion Deficit in Draft Budget

* username: rupertbu

Kuwait plans to increase spending by about 34 percent in the fiscal year starting April 1 and is projecting a budget deficit of 6.46 billion dinars ($22.4 billion), according to a copy of the draft sent to parliament.

Spending is forecast at 16.16 billion dinars and revenue at 9.7 billion dinars in the proposal. Oil revenue is projected at 8.62 billion dinars and non-oil revenue at 1.1 billion dinars. The 2010/2011 budget will be based on a price of $43 a barrel for oil, which now trades at about $72 a barrel.

Parliament’s budget committee is discussing the draft and the legislature is expected to vote on it in March.