Kuwait recorded in the fiscal year (FY) 2023-2024, an actual financial deficit of KWD1.6 billion ($5.23 billion). This represents a significant change from the previous fiscal year, which saw a surplus of KWD6.4 billion.
Decrease in total revenue
According to a statement from the Ministry of Finance, Kuwait’s total revenue in fiscal year 2023-2024 was KWD23.645 billion, down from KWD28.802 billion in the previous year. This decline was largely driven by a decrease in oil revenues, which amounted to KWD21.528 billion in 2023-2024, compared to KWD26.713 billion in the previous fiscal year.
Non-oil revenues reached KWD2.1 billion, representing a 1.3 percent increase from the previous fiscal year.
Increase in total expenditure
Total expenditure, however, increased from KWD22.370 billion in 2022-2023 to KWD25.206 billion in 2023-2024.
These financial figures represent the final account of Kuwait’s financial management for the fiscal year that ended on March 31st of the previous year, after they were approved by the Council of Ministers. Additionally, these figures do not include the financial position of the Kuwaiti government, its financial reserves, or the revenues of the Future Generations Reserve Fund.
OPEC+ production cuts
Kuwait has agreed to production cuts as part of the OPEC+ deal, amid the decline in global oil prices observed this year. However, the Gulf country has made relatively slow progress in diversifying its revenue sources compared to some of its Gulf Cooperation Council (GCC) neighbors.
In the 2023-2024 fiscal year, the average price per barrel of oil was $84.36, and Kuwait’s daily crude oil production rate was 2.650 million barrels.
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