Kuwait May See $53 Billion Surplus on Spending Fall: NBKFiona MacDonald
Kuwait may post a budget surplus of as much as 15.2 billion dinars ($53.4 billion) in the fiscal year that ended March 31, with spending possibly 10 percent to 20 percent below the forecast, National Bank of Kuwait said.
Kuwait’s 11-month provisional surplus of 18.8 billion dinars is “thanks partly to an unusual underspend in the large ‘miscellaneous expenditures and transfers’ segment,” the country’s biggest lender said in an e-mailed report today. Kuwaiti crude averaged $107 a barrel in the 2012-2013 fiscal year, NBK said.
Last year’s budget projected spending of 21.2 billion dinars and revenue of 13.9 billion dinars. The government said it will raise revenue allocations to its Future Generations Fund wealth fund this fiscal year to 25 percent from 10 percent to “encourage saving.”
An oil price of between $101 and $105 per barrel in the current fiscal year “could generate a budget surplus for Kuwait of between 8 billion and 12 billion dinars,” the bank said.
Kuwait, OPEC’s fourth-biggest producer, posted a record budget surplus of 13.2 billion dinars in the 2011-2012 fiscal year as oil prices and output rose.