World Economy

Kuwait Posts $15b Deficit

Kuwait Posts $15b DeficitKuwait Posts $15b Deficit

Kuwait’s government posted a budget deficit of KD4.6 billion ($15.22 billion) for the fiscal year 2015/16 as a result of the sharp decline in oil prices, TradeArabia reported. The deficit, before the transfer to the Future Generations Fund, reached 13.4% of GDP and was the first in 17 years; it compares to an average budget surplus of 21% of GDP recorded during the previous five years, said a National Bank of Kuwait report. However, the Kuwaiti government remains committed to its development plan projects and a similar deficit of 13% of GDP is expected for FY16/17 as the low oil price environment prevails, it said. The government saw revenues decline for the second consecutive year largely on lower oil prices. Revenues, at KD13.6 billion, were down by 45% in FY15/16. The price of Kuwaiti crude averaged $43 per barrel in FY15/16, 47% lower than the year before.