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FINANCIAL NEWS
Kuwait’s budget surplus hits USD52b in 10 months: Report
14 Apr 2012
(MENAFN) A specialized economic report showed that Kuwait’s budget for the fiscal year 2011/2012 recorded a USD51.7 billion surplus in the 10 months ended in January, which is the contrary of a USD21.54 billion deficit previously expected, state news agency KUNA reported.
The report also said that Kuwait made USD86.9 billion revenue during the 10-month period, helped by higher oil revenues, while spending recorded USDUSD35.18 billion, less than half of the budget allocation of USD69.64 billion.
The report indicated to Kuwait government’s recent decision to hike its social spending through direct transfers and hike in pensions and public sector wages.
In March, the Kuwait government ordered a large rise in public sector salaries while encouraging reduction on food prices.
The report expected gross domestic product to remain strong in light of the surplus at an annual rate of 5.4 percent for the current year.
Kuwait’s crude oil production remained high at 2.7 million bpd in March, and is expected to continue the output rate this year as it begins to produce closer to its estimated capacity of 2.7 million bpd and as new fields come on stream.
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