KUWAIT EXPECTS BUDGET SURPLUS

  • 30/10/2022

Kuwait City: Despite the drop in oil prices from more than $120 per barrel to $92 per barrel, positive indicators continue to dominate the performance of the state's general budget. It is 37.5% higher than the break-even price in the budget for 2022/2023. According to statistics prepared by the daily, based on announced oil prices since the start of the current fiscal year, the average value of the increase in the price of each barrel of oil sold since the start of the current fiscal year is estimated at about $29.6 per barrel, which means that every barrel of oil sold added a budget surplus of the same value. 


According to the statistics, Kuwait's total oil revenues from April to October were approximately 19.4 billion dinars, while the average volume of state expenditures during the same period was approximately 13.65 billion dinars, indicating that Kuwait achieved a budget surplus during the first seven months. It is estimated at 5.75 billion dinars for the year, based on total state expenditures of 23.1 billion dinars for the entire year, and an average volume of oil production of 2.8 million barrels per day, with a dollar price of 304 fils. 

According to a simple calculation and what the Parliamentary Finance Committee announced in the previous National Assembly, the increase in the price of a barrel of Kuwaiti oil above the equivalent price in dollars resulted in budget savings of 333 million dinars, which is the same as the size of the estimated savings in the draught general budget for the current fiscal year at an estimated price. 

At $80 per barrel, the increase in the price of Kuwaiti oil, estimated at $29.6, secures the total budget surplus of 9.85 billion dinars, a figure that is nominated for increase and decrease according to 3 main variables — any change in oil prices, up or down, during the remaining 5 months of the fiscal year will mainly affect the performance of the budget, as the increase in prices will naturally increase the size of the surplus, and its decrease will reduce it.

Related News

Kuwait population increases every 5 minutes
  • 03/02/2025
Kuwait Stabilizes Market Ahead of Ramadan
  • 29/01/2025
Kuwait Arrests Egyptian Expat for Forging Medical Documents
  • 29/01/2025
Kuwait Ministry of Education Cuts School Bag Weight by 50%
  • 27/01/2025
Security campaigns in Jleeb and Ahmadi
  • 27/01/2025
Kuwait introduces new housing standards for workers
  • 26/01/2025
2 Young Men Killed in Saad Al-Abdullah Car Crash
  • 26/01/2025
Women’s Health Index: Kuwait ranks 1st in Middle East, 2nd ...
  • 26/01/2025
Kuwait Announces 3-Day Holiday for Isra Wal Miraj
  • 25/01/2025
Kuwait Grapples with Diabetes
  • 25/01/2025
Kuwait's Revised Traffic Law to Take Effect on April 22, 202 ...
  • 24/01/2025
Kuwait Taps Turkish Company Proyapi for Railway Project Desi ...
  • 24/01/2025