Recording of an exceptionally strong exceptional budgetary surplus is at best a mixed blessing for Kuwaiti economy. Pluses include maintaining an attractive credit rating and absence of inflationary pressures. Yet, the adverse effects entail limited economic growth rates on the back of relatively cautious spending, with all implications for foreign investors.
Similar to Gulf Cooperation Council (GCC) fellow state of Qatar, the fiscal year in Kuwait runs from April to March. The practice is partly meant to provide members of executive and legislative branches sufficient time to sort out details of the budget at the start of the calendar year.
Sadly, the two branches are known for their public disputes over policy choices and spending priorities. The country has experienced six government resignations and shakeups over the past few years reflecting deficiency of a functioning relationship with successive chamber of deputies.
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