Kuwait posts $43bn fiscal surplus

BUDGET SURPLUS: Kuwait posted a surplus of $43 billion last fiscal year. (Getty Images)

Kuwait posted a budget surplus of 11.44 billion dinars ($43.02 billion) last fiscal year, 10% more than it forecast in February, as oil revenue was higher than expected, government data showed.

Income to the government of the world's seventh-largest oil producer was 18.93 billion dinars in the year to March 31, compared with a government forecast of 17.03 billion dinars in February, according to the data obtained by newswire Reuters on Tuesday.

Oil revenue was 17.72 billion dinars, compared with 7.45 billion dinars forecast in the budget at the start of the fiscal year, based on an expected oil price of $36 per barrel, the data showed.

In February, the government had predicted a surplus of 10.47 billion dinars based on 11 months of data and a deficit of 3.8 billion dinars at the start of the fiscal year. The surplus in the previous fiscal year was 5.49 billion dinars.

Kuwait invests 10% of its revenue in a fund for future generations. A surplus means state-run Kuwait Investment Authority (KIA), which manages the state's excess wealth, has more funds to spend on foreign investments.

Government expenditure for the year was 7.49 billion dinars, compared with the 11.3 billion dinars it had planned to spend, the data showed.

Kuwait's cabinet approved on Monday a draft budget for this fiscal year using $50 per barrel as an oil price forecast, and expenditure of 18.5 billion dinars, according to state-owned Kuwait News Agency. It gave no forecast for the balance. (Reuters)

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