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Mon 29 Jul 2019 07:19 PM

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Kuwait's budget deficit narrows to $11bn on oil price, revenues

Kuwait's Finance Ministry says higher-than-anticipated crude prices and a rise in non-oil revenue cut budget deficit in last fiscal year

Kuwait's budget deficit narrows to $11bn on oil price, revenues
Finance Minister Nayef Al-Hajraf.

Kuwait’s budget deficit narrowed to KD3.35 billion ($11 billion) in the last fiscal year, down 31 percent from a year earlier on higher-than-anticipated crude prices and a rise in non-oil revenue, the Finance Ministry said on Monday.

The shortfall last year was Kuwait’s fifth consecutive deficit.

Revenue in the year ended March 31 rose to KD20.56 billion, while spending increased 13.5 percent to KD21.85 billion, the ministry said in a statement.

Non-oil revenue jumped 24 percent to KD2.13 billion while oil  revenue rose 29 percent to KD18.4 billion, it added.

Non-oil revenue grew for the second consecutive year, while capital expenditure remained at 14 percent and is expected to reach 17 percent during the current fiscal year to stimulate economic growth, said Finance Minister Nayef Al-Hajraf.
  
Wages and subsidies accounted for 75 percent of all spending, the statement said, adding that the budget gap will be financed by withdrawals from the state’s treasury.