Kuwait’s finance ministry has announced its first budget surplus recorded in the last nine years. The surplus of 6.4 billion Kuwaiti dinars amounts to $20.86 billion. The government revenue comes from oil sales during the 2022-2023 financial year.
Kuwait, with its financial year concluding on March 31, experienced a notable 54.7 percent increase in revenue, reaching 28.8 billion Kuwaiti dinars compared to the 18.6 billion Kuwaiti dinars registered in the preceding year. The fiscal year of 2021-2022 had a deficit of 4.34 billion dinars.
Kuwait budget surplus due to oil revenues
According to the ministry’s final financial report, oil constituted a significant portion of the total revenue for the past year, making up 92.7 percent, with an average oil price of $97.1. The majority of this year’s surplus, approximately 93 percent, came from oil revenues, which rose 64.7 percent from the year before. On the other hand, non-oil revenues dropped 12.8 percent from the previous year. Kuwait has yet to fully dive into diversifying their revenue sources.
This progression signifies Kuwait’s ambitions to increase oil production, along with investing $300 bn in the energy sector by 2040. Further, a government plan reviewed earlier this month stated the government’s intent to create a new sovereign fund with the purpose of advancing its local economy, leading major projects, and drawing investments from foreign investors and the private sector.
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