Kuwait finance chief sees 2016-17 budget with $25 oil price

Finance Minister Anas al-Saleh also says parliament to discuss studies on how to 'ration spending'

Kuwaiti finance minister Anas Al Saleh. (AFP/Getty Images)

Kuwaiti finance minister Anas Al Saleh. (AFP/Getty Images)

Kuwaiti Finance Minister Anas Al Saleh said on Tuesday that he expected the price of oil for the 2016/17 budget to be set at around $25 a barrel.

Some 90 percent of the OPEC country's state revenues come from oil, prompting the Gulf Arab state's emir to call for measures to cut state expenditures.

Kuwaiti oil prices dropped to around $19.50 a barrel on Jan. 21, but have since rebounded and stood around $22.60 on Monday.

Asked if a $25 a barrel would be the price for oil in the 2016-17 budget, Saleh told journalists: "Around this (figure)."

Speaking on the sidelines of an oil conference in Kuwait, Saleh also said that parliament would discuss studies prepared by the government on how to "ration spending" at a meeting on Feb. 9, but gave no further details.

Kuwait's parliament last July approved a state budget for the current fiscal year, which runs to end-March 2016, envisaging a deficit of 8.18 billion dinars ($27.0 billion) - nearly half of total spending - because of low oil prices.

The budget for the year that began on April 1, 2015, featured spending of 19.17 billion dinars and revenues of 12.2 billion dinars, assuming an average oil price of $45 a barrel during the year.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Accounting meets religion in challenge for Islamic banks

Accounting meets religion in challenge for Islamic banks

Reconciling accounting standards and religious principles is...

Banking on reforms in Kuwait

Banking on reforms in Kuwait

As Kuwait stares down its first deficit in 20 years, the Gulf...

Saudis face dilemma between size and pricing in debut bond sale

Saudis face dilemma between size and pricing in debut bond sale

Riyadh is under pressure to maximise the size of its international...

Most Discussed
sponsoredTracking