Eight months into the fiscal year, Kuwait’s total revenues reached KD18.7 billion ($66.82 billion), up 42 per cent on the same period last year, a report said.
Kuwait’s budget reveals a massive surplus of KD11.6 billion ($41.45 billion) as revenues are already at 140 per cent of the budget for the full fiscal year, said the NBK economic brief.
It forecast a KD9-10 billion surplus for the entire fiscal year as spending could accelerate later in the year.
Total government spending stood during the eight months of the fiscal year stood at KD7.1 billion, slightly lower than the previous comparable period.
At KD 7.1 billion, the state has so far spent 37% of the FY11/12 budgeted amount, falling slightly short of the 5-year average for 8 months. Spending typically picks up towards yearend.
Spending on wages and salaries reached KD1.6 billion, an increase of 8.3 per cent from the comparable period of FY10/11. Salary hikes that were approved last year by the government on top of the usual annual raises were behind the stronger spending on this chapter, the report said.
Spending on goods and services were KD1.3 billion up 5.4 percent y/y. The increase came mostly from the cost of fuel incurred by the Ministry of Electricity and Water (MEW) which typically makes up more than two thirds of this category.
The revenue increase, which reached well above the budget figure for the full year, was largely driven by strong oil receipts. Kuwait export crude (KEC) averaged around $108 per barrel in the first 8 months of FY11/12 compared to an average of $76 per barrel during the same period of FY10/11.
Non-oil revenues totalled KD967 million, up 10 per cent y/y. The increase came mostly from “miscellaneous revenues and fees” likely related to compensation payments from the United Nations Compensation Commission (UNCC).
Meanwhile, “land sales” and “property fees”, though small categories, saw good growth likely related to improved real estate sales this year.