Kuwait announced that the draft budget for the fiscal year 2022-2023 sees oil income at $55 billion throughout the FY that ends in March 2023, up 83.4 percent from 2021-2022.
The Finance Ministry said it submitted the draft budget to the cabinet before presenting it to the National Assembly for approval.
The Ministry said in a statement that the 2023/2022 budget begins on April 1, 2022, and ends on March 31, 2023.
The proposed budget includes $9.5 billion in capital spending, with an expected deficit of $10.26 billion, down 74.2 percent from the previous year.
Finance Minister Abdulwahab al-Rasheed said next year’s budget projects higher revenue levels.
“However, we were keen to maintain our cap on expenditure at $72.5 billion while maintaining healthy capital expenditure that is in line with previous years.”
Kuwait’s budget for the next fiscal year includes an increase in revenue at $62 billion, up 72.2 percent from the current year. It will also see oil income at $55 billion, up 83.4 percent from 2021-2022.
The Ministry of Finance also estimated non-oil revenue to be at $6.9 billion, up 15.3 percent from the current year. Calculations are based on oil at $65 a barrel, up from the current $45.
It predicted spending to fall 4.8 percent to $72.2 billion, with capital expenditure accounting for 13.2 percent of that sum.
The Ministry said it is estimated that Kuwait will record a fiscal deficit of $10.2 billion, a 74.2 percent decrease from the current budget, which ends next March. The proposed budget needs an oil price of $75 per barrel to break even.