Kuwait's finance minister, Bader Al Humaidhi, announced on Tuesday that a $5.9 billion deficit is expected for the 2006-2007 budget as a result of a $7bn overpayment to the state pension agency.
During the past six years similar deficits were predicted, though actual figures ultimately showed surpluses or some $30bn, according to <i>KUNA</i> figures quoted in <i>Daily Gulf News</i>.
Al Humaidhi stated that some $35.4bn in expenditures is projected for the new fiscal year, reflecting a 43 percent rise over the current year's $24.7bn figure.
Revenues, on the other hand, are projected at $29.5bn, reflecting an impressive 88 percent increase from the estimated current year's revenues, ending on March 31, of $15.7bn.
This fiscal year's budget is the largest in Kuwait's history as a result of payments of social security arrears to more than 100,000 retired Kuwaitis.
Kuwait, the fifth largest member of OPEC, estimates oil revenues this year to reach some $26.8bn, twice as much as the projected amount.
Average price of Kuwaiti oil in the current 2005-2006 fiscal year topped $50 reaching a record high of over $58 last week, despite predictions of $36.
