In the opening seven months of fiscal year 2010 the surplus budget in Kuwait swelled to 5.59 billion dinars (around $19.9 billion) due to oil revenues that surpassed forecasts and decreased spending, according to recent data.
Globally, Kuwait is the fourth largest oil exporting nation and saw revenue climb up 19.1 percent when compared to last year, reaching 11.54 billion dinars by the close of October. These figures were stated by the Ministry of Finance.
Oil revenues in the OPEC member nation make up 94 percent of total national income. Spending during that opening seven month period hit 5.94 billion dinars, which was 36.4 percent of the total annual plan. In Kuwait the fiscal year runs from April to March.
Looking at this fiscal year, the surplus within the first six months hit 5.43 billion dinars.
Based on Kuwait’s crude being priced at $43per barrel, expectations in the national budget for 2010-2011 stated a 6.58 billion dinar deficit. Crude earns the majority of revenue in Kuwait.
Analysts state that this budget will most likely see the largest surplus in the region by this fiscal year end, since the budgeted oil prices were set far below those set by the current market. Those current prices are not forecasted to experience any sharp drops.
The benchmark US crude was trading for $89 per barrel this Monday. A poll of analysts found that surplus expectations for this fiscal year should hit 18.9 percent of GDP.Paul Holdsworth, Staff Writer, Gulf Jobs Market News