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FINANCIAL NEWS
Kuwait to cut planned spending for next FY
15 Dec 2014
(MENAFN) Kuwait said that it is considering cutting its planned state spending next fiscal year starting next April as lower oil prices pressure its finances, estimating that state spending would be USD65.2 billion compared with USD79.18 billion for this year, Gulf Business reported.
The Parliament budget committee said that this estimate for public spending is based on the forecast that the government would be running a budget deficit of USD9.55 billion, though these numbers might be revised in case the country underspends like this year when it posted a huge surplus of USD44.02 billion, after spending USD64.50 billion below the originally planned figure of USD71.67 billion.
The committee said that its plans are also based on USD60 per barrel as an average oil price, as well as a Kuwaiti oil production of 2.7 million barrels per day, which would be down from a price of the USD75 price and the production of 2.9 million bpd that was estimated for this current fiscal year.
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