Economy: Gulf, Kuwait enjoys income boom

06 August, 13:23

(ANSAmed) - ISTANBUL, AUGUST 6 - Kuwait's 2011 budget surplus reached 47 billion usd for the fiscal year. Kuwait has posted record budget surplus and revenues in the 2011-2012 fiscal year that ended on March 31 on the back of high oil output and price, as Anatolia News Agency wrote quoting an economic report published yesterday. The oil-rich Gulf state posted a historical budget surplus of 13.2 billion dinars (47 billion USD) for the 13th consecutive fiscal year, the Al-Shall Economic Consultants said in a report citing official figures.

The previous highest surplus of 9.33 billion dinars (33.2 billion USD) was posted in the 2007-2008 fiscal year when oil prices skyrocketed to a record 147 USD a barrel. Kuwait had projected a deficit of 21 billion USD for 2011-2012 because it calculated oil income at 60 USD a barrel compared to the actual 110 USD a barrel and oil output at 2.2 million barrels per day compared to the actual production of 3 million bpd. Kuwait has projected a deficit in each of the past 13 fiscal years but ended in surplus mainly for calculating oil income at a very conservative price. During that period, the emirate has accumulated about 250 billion USD in budget surpluses and is also expected to end the current year in the black, if oil prices remain high. Under Kuwaiti law, 10% of revenues are deducted every year in favor of the emirate's sovereign wealth fund. Revenues in the past fiscal year hit a record 107.5 billion USD, Al-Shall reported, more than twice the budget projections of 47.7 billion USD. Last year's income is 40.5% higher than the previous record of 76.5 billion USD posted in the 2010-2011 fiscal year. Oil revenues also reached a record 101.7 billion USD making up 94.5% of total income and more than twice the budget projections. (ANSAmed).


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