Kuwait’s budget deficit increases by 175 per cent

Kuwait’s budget deficit reached 10.8 billion dinars ($35.5 billion) in the 2020-21 year, up 174.8 per cent, the finance ministry said on Saturday.

Budget income fell to 10.5 billion dinars in the financial year that ended on March 31, down 38.9 per cent, while expenditure increased 0.7 per cent to 21.3 billion dinars, the ministry said in a statement.

Kuwait’s parliament in June approved the 2021-22 state budget proposed by the government in January, which projected 23.05 billion dinars in expenditure and a deficit of 12.1 billion dinars.

The parliamentary vote came amid a stand-off between government and parliament that has delayed reforms in the OPEC member state.

Earlier this year, Kuwait’s finance minister said that an increase in oil revenues due to higher oil prices does not cover the Gulf state’s budget obligations.