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Rise in oil prices contributes to Kuwait's largest ever budget surplus

Rise in oil prices contributes to Kuwait's largest ever budget surplus

Conservative revenue estimates and a rise in oil prices contributed to Kuwait's largest ever budget surplus _ 6.87 billion dinars, US$23.85 billion (euro18.80billion) _ for the last fiscal year, an economic report said Wednesday.
The National Bank of Kuwait quoted recently released official closing accounts figures as saying the surplus for fiscal 2005-2006 was "the largest on record and equivalent to 29 percent of the 2005 gross domestic product."
This small oil-rich state forecasts its state revenues, most of which come from oil, at figures much less than market prices, which usually turns estimated deficits into actual surpluses. The forecast shortfall for 2005-2006 that ended March 31, was 2.63 billion dinars (US$9.13 billion).
"Behind the rise in oil revenues was a 46 percent increase in the price of Kuwait crude, which averaged US$51 (euro40) per barrel during the fiscal year compared to US$35 (euro28) the previous year," said the National Bank of Kuwait, the country's largest commercial bank. Estimated revenues were based on a US$21 (euro17) average price.
The surplus does not include investment income, an off-budget item which is not officially reported by the government, the bank said.
Ten percent of Kuwait's income is routinely deducted from revenues every year to contribute to a fund for future generations meant to provide for Kuwaitis when oil runs out. The money, estimated at more than US$100 billion, is invested abroad.
de-wnt


Updated : 2021-03-05 06:26 GMT+08:00