Kuwait in­come plunges one-fifth over oil price slump

The China Post - - BUSINESS INDEX & -

Kuwait’s rev­enues dropped by one fifth in the first 11 months of the fis­cal year due to the decline in global oil prices, ac­cord­ing to fig­ures re­leased by the fi­nance min­istry Thurs­day.

Rev­enues of the OPEC mem­ber reached 23.2 bil­lion di­nars ( US$77.3 bil­lion) un­til the end of Fe­bru­ary from to 28.9 bil­lion di­nars in the same pe­riod last year — a fall of 19.7 per­cent.

The decline is mainly due to a 27.4 per­cent dive in oil rev­enues from 27 bil­lion di­nars last year to 21.2 bil­lion di­nars.

Oil in­come still rep­re­sented 91.4 per­cent of to­tal public in­come.

Oil lost around 60 per­cent of its value since June due to over­sup­ply, with a strong dollar and a weak global econ­omy damp­en­ing de­mand.

Price of Kuwaiti oil av­er­aged well above US$100 a bar­rel last fis­cal year but is cur­rently hov­er­ing around US$50.

Kuwait’s fis­cal year runs from April through March. Rev­enue fig­ures for March have not yet been pub­lished.

De­spite the sharp drop in rev­enues, the Gulf state posted a pro­vi­sional bud­get sur­plus of 9.9 bil­lion di­nars and it is ex­pected to end the year with a wind­fall for the 16th con­sec­u­tive year.

Kuwait cal­cu­lated the price of oil last fis­cal year at US$75 a bar­rel but re­duced the fig­ure to US$45 a bar­rel in the cur­rent 2015/2016 fis­cal year, which be­gan Wed­nes­day.

As a re­sult, the emi­rate is pro­ject­ing a deficit of US$24 bil­lion.

Sus­tained sur­pluses since 2000 have boosted fis­cal re­serves of the coun­try’s sovereign wealth fund to around US$550 bil­lion, ac­cord­ing to unof­fi­cial es­ti­mates.

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