Kuwait expects a budget deficit of $18 billion

Dubai: Kuwait's finance minister, Anwar Al Mudhaf, announces that Kuwait is expected to record a budget deficit of $18.3 billion (Dh67 billion) for the fiscal year 2024-2025. According to the Kuwait News Agency citing the minister, revenues are forecasted $61.7 billion (Dh226 billion), marking a 2.8 per cent decrease from the previous year.

Meanwhile, expenditures are anticipated to amount to $80 billion (Dh293.8 billion), reflecting a 6.6 per cent decline compared to last year.

Of the projected expenditures, salaries and subsidies will constitute 78.8 per cent of the state budget. Salaries are allocated $45.6 billion (Dh167 billion), while $13 billion (Dh47.7 billion) is earmarked for subsidies.

The minister emphasised Kuwait's commitment to continuing subsidies for individuals and businesses in need, underscoring the importance of financial sustainability in ongoing economic reforms.

Over the past decade, Kuwait has faced a cumulative deficit of $107.7 billion (Dh395.5 billion), which Al Mudhaf indicated was covered by state reserves. Looking forward, he estimated a deficit of $84.8 billion (Dh311 billion) over the next four years.