Kuwait budget deficit for first time in 16 years

Kuwait announced a record budget deficit for the fiscal year 2015-2016, for the first time in 16 years, due to a decline in global oil prices, Finance Minister Anas Al-Saleh said.

The total public budget deficit reached 4.6 billion dinars ($15.3 billion) in the fiscal year ending 31 March, the minister said.

According to Al-Saleh, revenues amounted to 13.63 billion dinars ($45.5 billion) reducing 45 per cent from the previous year. Expenditure amounted to 18.24 billion dinars ($60.5 billion) dropping 14.8 per cent.

The Minister said oil revenues decreased by 46.3 per cent. They accounted for 89 per cent of the total public revenues in the last financial year, compared with 95 per cent in the previous year.

Al-Saleh informed the Kuwaiti National Assembly in July that the government intends to borrow up to $10 billion from overseas markets, to cover the budget deficit.

The government also plans to borrow $6.6 billion from the domestic market.