A record budget deficit of 1.89 billion Kuwaiti dinars ($6.21 billion) is forecasted in Kuwait’s draft budget for the fiscal year 2002/2003, currently pending parliamentary approval. The figure does not count money allocated to the Reserve Fund for Future Generations (RFFG), a $35 billion international investment fund created to provide for the nation after its oil resources run out.
The budget is based on a conservative Kuwait Export Crude (KEC) oil price per barrel of $15, however according to the latest estimates released by the National Bank of Kuwait (NBK), KEC is expected to average $19.5–$25.5. If NBK’s forecast proves correct, resulting in significantly higher oil revenues for the Gulf Emirate then anticipated under the draft budget, the national deficit would thus amount to no more than KD1.53 million. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
