Kuwait's budget achieved a surplus for the first time in 9 years thanks to oil prices

Kuwait has reported a surplus in its public budget for the first time in nine years, driven by the surge in oil prices, which accounted for more than 90% of the Gulf state's total revenues.

In a statement on Wednesday, the Ministry of Finance announced that the final accounts for the state's financial management for the fiscal year 2022-2023 "record an actual surplus for the first time in 9 years... amounting to 6.4 billion Kuwaiti dinars," approximately 21 billion US dollars.

Oil revenues constituted 92.7% of the total revenues generated, as reported by the ministry on its website, with an average crude oil price of 97.1 dollars per barrel during the fiscal year.

The daily production rate reached 2.693 million barrels in Kuwait, which holds around 7% of the world's oil reserves.

The wealthy country's general budget had continuously registered deficits since the collapse of oil prices in 2014, and the deficit worsened during the COVID-19 pandemic. However, the increase in oil prices following the Russian invasion of Ukraine last year helped achieve the surplus.

On Wednesday, Deputy Prime Minister and Minister of Oil and Minister of State for Economic Affairs and Investment and Acting Minister of Finance, Saad Hamad Al-Badah, stated, "Kuwait enjoys a strong financial position, significant reserves, and monetary and financial stability, all of which shield us from the short-term effects of oil market fluctuations."

In January of last year, the Ministry of Finance submitted the draft law for the state's general budget for the year 2023-2024, which included a deficit of over 16 billion dollars, with an average oil barrel price set at 70 dollars.

The country has been experiencing recurring political crises involving the government, members of the ruling family, and the parliament, which has been dissolved several times in recent years.

 

 

 

 

 

 

AFP