Kuwait's budget for fiscal year 2011-12 is exceptional in many respects. On the one hand, projected revenues and expenditures are up by nearly 38 per cent and 10 per cent, respectively, undoubtedly sizable figures in a span of a single year.
On the other hand, the figures confirm ever-growing significance of the state in the local economy. The projected spending of $64 billion amounts to 54 per cent and 44 per cent of the country's gross domestic product (GDP) in nominal and purchasing parity terms, respectively, undoubtedly exceptional.
The figures clearly suggest that Kuwait's economic well-being is too dependent on public sector spending, and in turn on oil income.
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