The Kuwaiti National Assembly (Parliament) approved the government budget for the fiscal year 2021-2022, in which the government expects to spend 23.05 billion dinars ($76.65 billion) for the fiscal year that began in early April, with revenues of 10.9 billion dinars ($36 billion). It also expects a deficit of 12.1 billion dinars (about 40 billion dollars), which is 13.8 percent less than the target deficit in the budget for the current fiscal year ending on the 31st of March.
Kuwait is currently going through one of the most severe financial crises, as most of the liquidity in the State's General Reserve Fund has been drained due to the drop in oil prices and the repercussions of the spread of the Coronavirus.
In this context, Kuwaiti Finance Minister Khalifa Hamada pointed out, after presenting the draft budget for the new fiscal year, that "the size of the assets of the Future Generations Fund is constantly growing, but the General Reserve Fund suffers from fundamental challenges in liquidity," affirming that "the executive authority is committed to implementing its development projects and stimulate economic growth.
Source (Asharq Al-Awsat Newspaper, Edited)
