Kuwait's Budget Shifts from Surplus to $5.23 Billion Deficit

Kuwait reported a fiscal deficit of 1.6 billion dinars ($5.23 billion) for the 2023-2024 fiscal year, reversing a surplus of 6.4 billion dinars in the previous year, according to a statement from the Ministry of Finance. Total revenue for the year amounted to 23.645 billion dinars, down from 28.802 billion dinars in the previous year, while total expenditures rose to 25.206 billion dinars from 22.370 billion. These figures reflect the final accounts for the fiscal year ending March 31, 2024, approved by the Cabinet, and exclude the state’s financial position or future generation reserve fund revenues. Kuwait had to adhere to OPEC+ production cuts amid declining oil prices, and progress on diversifying revenue sources has been slow. Oil revenues totaled 21.528 billion dinars, compared to 26.713 billion the previous year, with an average oil price of $84.36 per barrel and daily production at 2.65 million barrels. Non-oil revenues increased by 1.3% to 2.1 billion dinars.