Strong oil revenues help generate large surplus for first eight months of fiscal year
Kuwait's government budget surplus stood at KWD14.7bn (US$52bn) in the first eight months of its fiscal year thanks to strong oil revenues, data from the Gulf country's finance ministry showed.
The April-November surplus accounts for around 33.1 percent of the OPEC member's 2011 gross domestic product, according to a Reuters calculation based on the latest official data.
A Reuters poll in September forecast Kuwait would record a budget surplus of 23.8 percent of GDP in fiscal year 2012/13, which began in April.
Total revenue was KWD21.6bn while spending reached a mere KWD6.9bn, around a third of the KWD21.2bn total projected for the year. Kuwait had originally wanted to spend KWD14.2bn by November, the data showed.
The surplus is already larger than the figure for full year 2011/2012, when Kuwait booked a record KWD13.2bn surplus thanks to robust oil income and lower spending.
Receipts from crude exports account for around 95 percent of the government's income. Kuwait's cabinet approved a revised budget for the current fiscal year in October.
While its fiscal position is strong, political upheaval in the Gulf Arab state has stalled implementation of major parts of a KWD30bn (US$107bn) economic development plan announced in late 2010.
Analysts say Kuwait needs to diversify its oil-reliant economy and control wage growth.
As part of plans to invest revenues more efficiently, authorities decided to increase the amount channelled into Kuwait's Future Generations Fund, a nest egg for when oil supplies diminish or for when the economy suffers other shocks.
A newspaper reported on Sunday that assets in the fund totalled US$261bn at the end of the last fiscal year.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Kuwait has A budget surplus of KD21.6bn and what are they going to do with it, well let's see? They badly need to construct a new airport, the current airport can hardly handle the passenger levels and what if they want polished businessmen to come in and assist them with implementing the development plan, they certainly need to make a good impression and comply with international airport regulations by purchasing adequate airport air traffic control systems. The traffic has become unbearable in the tiny GCC State so some of that budget can be allocated towards a new metro system, this would certainly improve the traffic conditions. And then let's build cultural centers and a national theatre for the people! How about spending well-spent money on building an Environmental Ministry to get a handle on a host of issues. Then theres a country that needs street lights, new roads, well, infrastructure improvements - GET YUOR HEAD OUT OF THE SAND AND START SPENDING!