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FINANCIAL NEWS
Kuwait projects USD40.2b of budget deficit in 2016
29 Jan 2016
(MENAFN) Due to the infamous ongoing decline of oil prices, Kuwait’s 2016-17 draft budget forecasts a deficit of USD40.2 billion, almost 50 percent higher than 2015, based on recent reports.
Authorities called for budget cuts and better management of spending to cope with declining revenues which are anticipated to hit USD24.3 billion, reflecting a 1.6pct plunge from the past year.
Basically, earnings would cover only 71 percent of state salaries and associated costs, which are estimated at USD34.2 billion, not to mention the budget will offer USD9.5 billion for state subsidies.
All in all, the 2015-16 state budget, which was approved by parliament last July, predicted a deficit of USD27.0 billion, which is nearly half of total spending, nonetheless; the oil exporter revealed high hopes.
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