‘Budget calculated on break-even price of $75 per barrel’

KUWAIT CITY, Jan 25: The Ministry of Finance said the expected deficit in the state’s general budget for fiscal (2022-2023) is estimated at 3.1 billion dinars, down 74.2 percent from the current budget that ends on March 31, reports Al-Rai daily. The daily quoting ‘Finance’ sources said the draft general budget for fiscal 2022-2023 has been submitted to the Council of Ministers in preparation for the issuance of a decree for deliberation and approval by the National Assembly as the budget that comes into force on April 1, 2022 and ends on March 31, 2023, adding it is calculated on the breakeven price of $75 per barrel.

The Minister of Finance and Minister of State for Economic Affairs and Investment Abdul Wahhab Al-Rasheed was quoted as saying, “Thanks to God, and thanks to concerted efforts and commitment to the directives of the Honorable Council of Ministers to rationalize public spending, the Ministry of Finance has set a budget ceiling that does not exceed 22 billion dinars while maintaining a healthy ratio of capital spending to support the wheel of the national economy.” The ministry confirmed that the expenditures in this budget are less than the current year’s budget, as the specified expenditure ceiling was adhered to, while maintaining a healthy ratio of capital expenditures (construction) to support the economy

It stated that the total estimated revenues were about 18.8 billion dinars, while the estimated oil revenues were16.7 billion dinars, which reflects an increase of 83.4 percent over the current budget. It indicated that non-oil revenues were estimated at 2.1 billion dinars, which reflects an increase of 15.3 percent over the current budget, adding that the price of a barrel was estimated on the basis of 65 dollars per barrel as an average for the year. The ministry said that the total estimated expenditures amounted to about 21.9 billion dinars, explaining that the percentage of salaries and subsidies of the total expenses amounted to about 74.5 percent, while the proportion of capital expenditures of the total expenses amounted to 13.2 percent, and the percentage of other expenses “the rest of the expenses” amounted to about 12.3 percent.