Budget deficit of Kuwait has spiraled 175 percent to $35.5 billion in 2020-2021, the highest in the country’s history.
According to report by the Kuwaiti Finance Ministry revenues touched 10.5 billion dinars in the fiscal year ending in March 31, a decrease of 39 percent from the previous year, while spending amounted to 21.3 billion dinars, an increase of 0.7 percent.
In June, the Kuwaiti parliament approved the 2021-2022 budget proposed by the government in January, which forecast spending of 23.05 billion dinars and a deficit of 12 billion dinars.
The Ministry said that oil revenues fell 42.8 percent in 2020-21 to 8.8 billion dinars, while other revenues fell 6.5 percent to 1.7 billion dinars.
“The deficit is due to the sharp drop in oil prices and the curtailment of government activities to a minimum as a result of the COVID-19 pandemic,” Finance Minister Khalifa Hamadeh said.
“The government is fully prepared to move forward with implementing more realistic solutions to develop public finances,” he added.
Hamadeh said that increased oil revenues due to higher oil prices did not cover the state’s budget obligations, and that Kuwait would need oil prices at $90 a barrel to adjust the budget.