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Kuwait projects $30 billion budget deficit on Opec cuts

Christian Fernsby ▼ | January 15, 2020
Kuwait's ministry of finance submitted to parliament yesterday its proposed budget bill, which projects a deficit of 9.2bn Kuwaiti dinar ($30.25bn) for the year that starts on April 1.
Kuwait oil
Oil industry   Kuwait oil
This would be a seventh consecutive year that Kuwait has posted a deficit, and is 12pc larger than the KD8.2bn projected for the current year.

Topics: Kuwait budget deficit Opec

The bill projects lower state revenues, particularly from the oil and gas sector.

Overall, the ministry forecasts revenues at KD14.8bn, down by 9.7pc on the current year, and state expenditure at KD22.5bn, level with the current year.

The deficit forecast takes into consideration a mandatory 10pc allocation of total revenues to Kuwait's future generations fund, which is managed by the sovereign wealth fund KIA.

Taking this allocation into account, the ministry put a break-even crude price for its proposed budget at $86/bl.