Kuwait’s Budget: $17 Bn Deficit, $50 Per Barrel of Oil

Kuwait’s Finance Minister Nayef al-Hajraf. KUNA
Kuwait’s Finance Minister Nayef al-Hajraf. KUNA
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Kuwait’s Budget: $17 Bn Deficit, $50 Per Barrel of Oil

Kuwait’s Finance Minister Nayef al-Hajraf. KUNA
Kuwait’s Finance Minister Nayef al-Hajraf. KUNA

Kuwait has announced a state budget for the year ending on March 31, 2019 with a deficit of 17 billion dollars and based on an average oil price of $50 per barrel.

It projected on Monday spending at 20 billion dinars ($66.7 billion) and revenues at 15 billion dinars.

Kuwait’s Finance Minister Nayef al-Hajraf said the budget would be based on an average oil price of $50 per barrel, and that the deficit would be financed by borrowing and using reserves.

Hajraf said that subsidies are projected at KD3.432bn of the budget. The budget for the current fiscal year was estimated based on an oil price of $45.

Oil revenues are expected to reach KD13.3bn, up from KD11.7bn a year ago. Non-oil income is projected to remain almost flat at KD1.6bn.

The KD Five billion deficit would be before the transfer of 10 percent of revenues to Kuwait’s sovereign wealth fund.

The subsidy provided by the oil-rich country and an OPEC member over the past four years has been controversial and debated between the government, which wanted to cut costs as oil prices fall, and MPs who refused to reduce any benefits enjoyed by citizens.

Hajraf said that salaries would not be affected by the spending cap and the state would continue providing support for those who deserve it.

He said the new budget came under the slogan “control spending, a step towards financial reform,” stressing that the government is determined to control spending and reduce the institutional and financial wasting in all fields.

"We also seek to raise operational efficiency and increase the efficiency of collection of non-oil revenues," Hajraf added.



Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."