By Daniel Shane
Underspend in oil-rich Gulf state could lead to bumper surplus, says new report
Kuwait could post a budget surplus of as high as KD15.2bn ($53.4bn) for the fiscal year that ended March 31, according to National Bank of Kuwait (NBK), based on spending between 10 percent and 20 percent lower than forecast.
NBK’s report said that the Gulf state’s surplus of KD18.8bn for the first 11 months of its financial year was partly down “to an unusual underspend in the large ‘miscellaneous expenditures and transfers’ segment”.
Kuwait’s budget for last year forecast spending of KD21.2bn with revenue of KD13.9bn. Authorities said that they would increase revenue allocations for the country’s Future Generations Fund in the current fiscal year to 25 percent from their current 10 percent.
Oil-rich Kuwait posted a budget surplus of KWD13.2bn in the 2011-2012 on the back of rising oil prices.