Kuwait records first fiscal surplus in nearly a decade

Kuwait records first fiscal surplus in nearly a decade

KUWAIT: Kuwait recorded its first surplus in nine years for the 2022-2023 fiscal year which ended in March, the finance ministry said on Wednesday, crediting last year’s surge in oil prices. The state, whose revenues rely heavily on hydrocarbons, closed its fiscal balance with a surplus of KD 6.4 billion ($21 billion), the ministry said, against an actual deficit of KD 4.3 billion ($14 billion) in the previous fiscal year. “The final account of the state’s financial administration records an actual surplus for the first time in nine years,” the ministry said in a statement on its website.

More than 92 percent of revenues came from oil after prices surged following last year’s Russian invasion of Ukraine. Oil revenues for the fiscal year which started in April 2022 stood at KD 26.7 billion ($87 billion), a 64 percent increase from the previous year, the ministry said. The average price of a barrel of oil over the fiscal year stood at $97.1, an increase of 21.4 percent compared to the previous year. Output was 2.7 million barrels per day. Revenues for the current fiscal year are expected to fall due to a decline in oil prices.

The draft budget for the 2023-2024 fiscal