Kuwait Posts $19.9 Billion Surplus in First 7 Months

Kuwait had a preliminary budget surplus of 5.6 billion dinars ($19.9 billion) in the first seven months of the fiscal year ending in March 2011, the Finance Ministry said.

State income was 11.5 billion dinars, or 118.7 percent more than projections, and spending was 5.9 billion dinars, according to data posted on the ministry’s website today. About 10 percent of revenue will be saved in the Reserve Fund for Future Generations.

Oil revenue was 10.9 billion dinars in the seven months to Oct. 31 while non-oil revenue was 655.3 million dinars, the data showed.

Kuwait recorded a budget surplus of 6.44 billion dinars in the 2009/10 fiscal year after oil revenue was more than double the forecast. The government had forecast a budget deficit of 4.86 billion dinars for the fiscal year, based on an oil price of $35 a barrel. It had a surplus of 2.74 billion dinars in the previous fiscal year. Oil is currently trading at about $89.

Kuwait projected a budget deficit of 6.6 billion dinars in the current fiscal year that started April 1, based on an oil price of $43 a barrel. Spending was forecast at 16.3 billion dinars and revenue at 9.7 billion dinars.

Kuwait was the fifth-biggest producer in the Organization of Petroleum Exporting Countries in November. The country produced 2.30 million barrels of oil a day on average, according to Bloomberg data.

To contact the reporter on this story: Fiona MacDonald in Kuwait at fmacdonald4@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net