Kuwait to spend $64bn in 2011-12 budget
Kuwait's $64bn 2011-12 budget to focus on four-year development plan.
Kuwait is expected to spend $64billion in its 2011-2012 budget, a 10% increase from the current fiscal year, as it seeks to reduce its dependence on oil.
The new budget will assume a crude price of $60 a barrel for the year, Finance Minister Mustapha al-Shamali told the state news agency KUNA.
Kuwait estimated revenue of $48.21billion for the upcoming fiscal year, said Shamali. This would put the planned budget deficit at $16.1billion, or 14% of gross domestic product, down from a 21% shortfall planned for the current fiscal year. The fiscal year starts in April.
The budget draft, approved by the government on 24 January, still needs to be cleared by parliament. Last year, parliament only approved the current budget in June, three months into the fiscal year.
The new budget includes spending on projects in the government's four-year development plan, worth $107.6billion.
Kuwait, the world's fourth-largest oil exporter, logged a surplus $25.22billion in the first nine months of this fiscal year on higher-than-forecast oil revenues and lower spending.
The 2010-2011 budget spending was set at $58.46billion, and projected a deficit of $23.67billion. The budget was based on a modest oil price of $43 a barrel.