Kuwait budget surplus tops $32bn

RECORD SURPLUS: Unprecedented revenues are the result of record oil income, estimated by NBK at 18.14 billion dinars. (AFP)

Oil-rich Kuwait is forecast to have posted a record budget surplus of 8.7 billion dinars ($32.7 billion) in the 2007/2008 fiscal year that ended last month, an economic report said on Wednesday.

National Bank of Kuwait (NBK) estimated the oil-rich emirate has posted record revenues of 19.17 billion dinars in the year running from April 1 to March 31, up 130% on a budget projection of 8.3 billion dinars.

NBK, without giving a figure, also estimated spending to be five to 10% off the budget projections of 11.3 billion dinars.

The unprecedented high revenue and surplus is the result of record oil revenues, estimated by NBK at 18.15 billion dinars, or just under 95% of total income.

The government has not announced actual official figures for last fiscal year but the finance ministry said in March that revenues in the first 11 months of the year reached 17 billion dinars.

NBK said the price of Kuwaiti oil last fiscal year averaged $75 a barrel, more than double the conservative $36 adopted by the budget in calculating oil income.

Kuwait, which says it sits on about 10% of global crude reserves, is pumping 2.55 million barrels of oil a day.

Kuwait's largest surplus was $24 billion in 2005/2006 although it dropped to $18 billion the following year.

In the eight fiscal years preceding last year, Kuwait's budget surpluses have totalled around $72.5 billion. In all those years, it projected a deficit.

As of March 2007, the emirate said it had $213 billion of assets in two funds invested in huge foreign holdings.

The Gulf state has a native population of just over one million, besides 2.345 million foreign residents.

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