#Kuwait Sees $16.4 Billion Deficit, Looks to Boost Revenue - Bloomberg

Kuwait Sees $16.4 Billion Deficit, Looks to Boost Revenue - Bloomberg

Kuwait unveiled budget proposals that forecast a deficit for the fiscal year starting April 1, despite efforts by the OPEC member to boost revenue booked from independent state entities.

The Gulf nation is projecting a 5 billion dinar ($16.4 billion) shortfall, the Finance Ministry said Tuesday, after reducing the price it expects to get for oil to $70 a barrel and increasing spending. That compares with a 1.35 billion dinar surplus expected for the current year, revised up from a 124 million dinar deficit.

Income in 2023/24 is projected at 21.23 billion dinars, after including profit generated by government entities such as Kuwait Petroleum Corp. not historically added to the state’s budget revenue streams. That compares with 24.75 billion dinars estimated in the current fiscal year. The change is expected to be a more accurate representation of the budget’s true revenue.

Non-oil income is expected to account for 19% of total projected income, compared with around 10% in previous years. Oil revenues are expected to fall.