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FINANCIAL NEWS
Kuwaiti lawmakers pass 2010/11 budget
01 Jul 2010
(MENAFN) The Kuwaiti parliament has approved a $56 billion state budget for 2010/11 which increases spending by 67.2 percent from the previous fiscal year as the Gulf country aims to reduce its dependence on oil, Kuna reported.
The new budget was approved by 39 members of parliament, 21 voted against, one abstained. The law now needs to be signed by the country’s ruler.
The new budget projects a deficit of $25.97 billion with expenditure set at $56.07 billion, up from the $33.7 billion the Opec member spent in the 2009/10 fiscal year.
However, analysts say the budget will in the end register the biggest surplus in the Gulf because the government has assumed a very conservative price of $43 a barrel for oil in its calculations – well below current market rates that are not expected to waver heavily.
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