(MENAFN) In the fiscal year 2023-2024, Kuwait experienced a significant shift from a fiscal surplus to a deficit, recording an actual fiscal shortfall of KWD 1.6 billion (approximately USD5.23 billion). This contrasts sharply with the previous fiscal year, during which the country enjoyed a surplus of KWD 6.4 billion. The downturn in fiscal performance is attributed to a combination of decreased revenues and increased expenditures.

According to a statement from the Kuwaiti Ministry of Finance, total revenues for the fiscal year 2023-2024 amounted to KWD 23.645 billion, a notable decline from KWD 28.802 billion the year before. This decrease in revenue is coupled with an increase in total expenditures, which rose to KWD 25.206 billion from KWD 22.370 billion in the previous fiscal year. The data reflects the final account of the State’s financial administration for the fiscal year ending on March 31, and does not encompass the State’s financial reserves or revenues from the Future Generations Reserve Fund.

The drop in Kuwait’s fiscal health is linked to compliance with OPEC+ production cuts amid a slump in oil prices. Kuwait's total oil revenues for the fiscal year 2023-2024 were KWD 21.528 billion, down from KWD 26.713 billion in the prior year. With an average oil price of USD84.36 per barrel and a daily production rate of 2.650 million barrels, the oil sector's reduced earnings have significantly impacted the nation’s budget. Despite a slight increase in non-oil revenues, which reached KWD 2.1 billion—up by 1.3 percent from the previous year—the overall fiscal outlook remains strained as Kuwait continues to face challenges in diversifying its revenue sources and managing its economic performance amid fluctuating oil prices. 

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