Nayef Al-Hajraf, Kuwaiti Finance Minister predicted that the budget deficit for the new fiscal year 2019-2020 will reach about 6.116 billion dinars before deducting the reserve ratio for future generations, and 7.7 billion dinars after deduction. Kuwait annually deducts 10% of its revenues and transfers it to the Future Generations Fund managed by the General Authority for Investment (KIA), which represents Kuwait's Sovereign Fund.
Al-Hajraf pointed out that "revenues will reach 16.4 billion dinars, while spending will reach 22.5 billion dinars in the new budget," adding to that "the deficit in the new budget will be fully covered by the general reserve of the state."
"The budget is based on the price of $55 per barrel of oil and on production of 2.8 million barrels per day. The price of a barrel of oil is expected to range from $55 to $65 during the budget period, which will allocate 3.97 billion dinars for subsidies, while capital expenditure will be 17 percent of expenditure" He said.
Source: (Al-Arabiya.net, Edited)
