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Mon 17 Sep 2012 06:07 PM

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Kuwait aims to boost rainy day fund

Gulf state want to raise amount of revenues set aside to 25% from 10% - KUNA

Kuwait aims to boost rainy day fund

Kuwait wants to raise the amount of revenue set aside in a rainy day fund to 25
percent from 10 percent in the 2012-2013 budget, state news agency KUNA said on
Monday.

Kuwait's cabinet has asked the finance ministry to put the change in the
budget, the news agency said in an SMS news alert.

The Future Generations Fund, a nest egg for when oil runs out, was set up in
1976 and is managed by the Gulf state's sovereign wealth fund, the Kuwait
Investment Authority and its overseas unit.

The special fund invests outside Kuwait, a major oil producer. Up to now, 10
percent of all state revenues, mostly from oil, were transferred to the fund on
an annual basis and all investment income was reinvested.

"This order came after discussing a number of issues related to economic
affairs and the situation going forward," Finance Minster Nayef al-Hajraf said,
according to KUNA.

The KIA was not immediately available for comment.

Kuwait booked a record budget surplus of 13.2 billion dinars ($47 billion) in
the fiscal year that ended in March thanks to robust oil income and lower
spending than planned.

A long-running political crisis has held up investment in the OPEC member,
especially in large infrastructure projects, allowing the budget surplus to
grow.

Despite its healthy fiscal position, Kuwait is struggling to diversify its
heavily oil-reliant economy as the political row holds up investment and
reforms.

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Carlosq7 8 years ago

Ok.