Kuwait’s parliament has approved the country’s budget for 2015/2016 which projectws a deficit of KD 8.2bn ($ 27bn), including the transfer of 10 per cent of the revenues to the Future Generations Fund.
This deficit, which represents about half of the total spending, is mainly attributed to tumbling of crude oil prices, which highlights the impact of lower export earnings for Kuwait.
This forecast deficit is significantly higher than Kuwait’s provisional budget deficit for Y2014/2015 of KD 2.3bn, after contributions to the country’s Future Generations Fund.
Finance Minister Anas Al Saleh says Kuwait is facing a difficult financial situation and must control the growth in spending and diversify its sources of income away from oil.