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FINANCIAL NEWS
Kuwait plans 13% increase in new fiscal budget spending
19 Mar 2012
(MENAFN) Kuwaiti government is eyeing 13 percent increase in 2012/2013 fiscal budget, which starts on April 1, as the Gulf state struggled with the ongoing industrial strikes, state news agency KUNA reported.
KUNA quoted Adnan Abdulsamad, the head of parliament, as saying the budget for the 2012/2013 fiscal year is estimated at around USD79 billion.
He expected revenues of around USD50 billion, USD45.7 billion would come from oil, based on an oil price of USD65 a barrel.
Kuwait posted USD47.2 billion surplus in the first nine months of its 2011/12 fiscal year. The oil rich state could well post a surplus next fiscal year as current oil prices are trading well above USD100.
Kuwait agreed to increase state employees’ wages 25 percent, which policymakers and economists say that on the long-run it might pose a risk on the state’s finances if wages keep rising and oil prices fall back.
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