Business | Economy
Kuwait calculates budget on $50 oil
Kuwait has assumed an oil price of $50 a barrel in calculating its proposed 2008/09 budget, Finance Minister Mustapha Al Shamali said on Thursday.
- Reuters
- Published: 00:04 January 25, 2008
Kuwait: Kuwait has assumed an oil price of $50 a barrel in calculating its proposed 2008/09 budget, Finance Minister Mustapha Al Shamali said on Thursday.
The Gulf state said on Wednesday the budget bill forecast a deficit of 5.12 billion dinars ($18.75 billion) and oil revenue of 11.65 billion dinars.
Kuwait assumes a conservative oil price average in calculating revenue. Kuwait's crude fetched $80.73 a barrel on Wednesday and hit an all times peak of $89.03 in November, according to Kuwait Petroleum Corp data.
Kuwait has raised its 2007/08 budget surplus forecast to more than six billion dinars due to increased oil revenue and reduced expenses, government data released in December showed.
The government had predicted a deficit of 3.8 billion dinars in the 2007/08 fiscal year on an assumed oil price of $36 a barrel. The Opec member raised output in 2007 in line with the oil group's decision to increase production to curb prices.
The bill becomes law only after approval by the cabinet, parliament and the Gulf state's ruler. Parliament often requests changes to the budget before giving its nod.
Meanwhile, the bill for the year, which ends in March, set the oil exporter's expenditure at 17.9 billion dinars, the official Kuwait News Agency reported, citing a finance ministry statement.
The gross deficit, which incorporates an allocation of 10 per cent of state revenue to a future generations fund run by the government investment arm, was put at at 6.39 billion dinars.
The bill becomes law only after approval by the cabinet, parliament and the Gulf state's ruler.
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