A surge in oil prices is expected to more than halve Kuwait’s budget deficit in the current fiscal year, according to a local think-tank.

Kuwait has assumed an average price of around $70/barrel for its crude but actual prices have averaged at nearly $85.7/barrel in the first seven months of the 2023-2024 fiscal year, which started on 1 April, Al-Shal Centre said in a report.

The report, published by Kuwait’s Al-Qabas newspaper on Monday, said Kuwait’s oil export earnings could reach 21.2 billion Kuwaiti dinars ($69.9 billion), far higher than the projected KWD17.169 billion ($56.6 billion).

Total revenues could climb to nearly KWD23.488 billion ($77.5 billion) with the addition of non-oil earnings, the report said.

With spending forecast at KWD26.279 billion ($86.7 billion), Kuwait’s 2023-2024 budget could end up with a shortfall of about KWD2.79 billion ($9.57billion), far below the assumed deficit of KWD6.8 billion ($22.44 billion).

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.