According to the finance ministry, the government has forwarded the draft budget for the 2024–2025 fiscal year, which predicts a KD 5.9 billion deficit, to the National Assembly for consideration and approval. Based on numbers released by the finance ministry, the expected shortfall is 13.5 percent less than the deficit estimated for the current fiscal year 2023/2024, which is KD 6.8 billion.
Lower revenues and spending are also projected in the draft budget as compared to the current fiscal year, which concludes on March 31. Since oil prices account for over 90% of Kuwait’s revenue, projected estimates are typically subject to change at the end of the fiscal year. Due to oil prices being far higher than anticipated in the budget, Kuwait completed the most recent fiscal year 2022–2023 with a massive surplus of KD 6.5 billion instead of the big loss it had predicted.
The finance ministry stated that it expected oil prices to be lower than they are now, at $70 per barrel, in the upcoming fiscal year. The budget’s anticipated revenues of KD 18.7 billion are 4.1% less than the estimated revenues for 2023–2024. This is mostly because oil income is expected to decline from KD 17.2 billion to KD 16.2 billion. In contrast, non-oil revenues increased from KD 2.3 billion to KD 2.4 billion, a 5.7% increase, according per the finance ministry’s figures.
The estimated amount spent is KD 24.6 billion, which is 6.6% less than KD spent the year before.Kuwait’s largest expenditure was $26.3 billion. According to the finance ministry, 79.4% of overall spending is expected to go toward wages and subsidies. The expected cost of subsidies is KD 4.7 billion, while wages and related expenses total KD 14.8 billion.
The projected amount spent on capital is KD 2.8 billion. The budgets committee of the National Assembly will examine and assess the draft budget. Before the Assembly ends the term in the summer, it will discuss and approve it ten times.