Kuwait’s provisional budget surplus shrank 15 % in the first six months of the current fiscal year mainly due to a sharp jump in expenditures according to the media news.
The OPEC member posted a preliminary budget windfall of 10.7 billion dinars ($37.8 billion, 27.5 billion euros) in the period ending Sept. 30, compared to 12.6 billion dinars in the corresponding period last year, according to figures posted on the ministry website.Kuwait’s fiscal year runs from April 1 to March 31.The main reason for the sharp drop in surplus is a 50 % jump in spending to 5.1 billion dinars by the end of September from 3.4 billion a year ago, the official data showed.
Revenues remained almost unchanged at 15.8 billion dinars compared to 16.0 billion dinars a year ago. Oil income, which makes up around 95 % of total revenues, dropped slightly from 15.4 billion dinars in the 2012-2013 fiscal year to 15.0 billion dinars in the current year.Over the past seven years, projects in the Gulf state have been impeded by continued political disputes between the ruling family-controlled government and opposition MPs despite an unprecedented oil windfall due to high prices.
But the government has awarded a number of megaprojects in the past several months, including a power and water desalination plant and a 36-kilometre (22-mile) causeway, each costing $2.6 billion.
The government is also in the process of awarding a number of oil projects estimated to cost around $30 billion.Kuwait is projecting spending in the current fiscal year, which ends on March 31, at 21.0 billion dinars, with revenues at 18.1 billion dinars, leaving a deficit of 2.9 billion dinars.
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