The Kuwaiti public budget deficit during the first 4 months of the fiscal year 2020-2021 was approximately 4.2 billion dinars, without deducting the 10 percent for the benefit of future generations' reserves, which were previously deducted from revenues, before the law was approved not to deduct from the general reserve in favor of the Future Generations Fund, except in the event of achieving a budget surplus, as one of the ways to address the liquidity shortage that Kuwait suffers from as a result of low oil prices and increased public budget expenditures.
In figures, the general budget achieved an average monthly deficit during the first 4 months of the fiscal year amounting to more than one billion dinars, while the general budget is heading to achieve the seventh deficit in a row since the oil recession in 2014. This deficit reflects a significant increase in the value of expenditures versus revenues when compared in the corresponding period of the fiscal year 2019-2020, when the budget achieved a surplus of 44.7 million dinars, after deducting 630 million for the reserves of future generations. When comparing the 4.2 billion dinars to the size of the deficit recorded for the entire previous fiscal year, which amounted to 5.6 billion, it also shows a significant increase in the value, as it becomes clear that the 4-month deficit constitutes about 3 quarters of the deficit recorded for the entire year 2019-2020.
Source (Al-Rai Newspaper-Kuwait, Edited)
