Kuwait’s national budget for the fiscal year 2002/2003 forecasts a three percent increase in spending and an eight percent fall in revenues, resulting in a $6.1 billion deficit, according to a Global Investment House report. Kuwait’s fiscal year starts on April 1 and ends March 31.
The report noted, however, that the forecasted deficit is unlikely to become a reality, given the conservative assumption for the oil price on which the budget was based and the government’s tendency for underspending. Oil revenues in the budget were calculated on the basis of a conservative price of $15 a barrel and daily production of about two million barrels.
Kuwait customarily budgets for a deficit, based on highly conservative oil price assumptions, Since the state has a significant off-budget income from overseas investments, a period of low oil prices is not likely to cause a major shock. — (menareport.com)
© 2002 Mena Report (www.menareport.com )