Kuwait Closes 2019-2020 Fiscal Year With $18 Bln Deficit -finance Ministry

The final account of the state for the fiscal year ending on March 31, 2020 showed an actual deficit of 5.6 billion dinars, after deducting the share of the future generations reserve, an increase of 68.6% over the final account of the previous fiscal year, and a decrease of 31.8% from the budget estimates for the fiscal year ending 31 March 2020, the average actual price of a barrel of oil is $ 61.12.

The Ministry of Finance said: “Salaries and subsidies accounted for 76% of total expenditures, while oil revenues decreased 16.6%, and the custody account balance decreased by 665 million dinars from the previous fiscal year.”

In contrast, actual capital expenditures accounted for 12% of total expenditures. Oil revenues amounted to 15.3 billion dinars, a decrease of 16.6% from the previous year, at a time when non-oil revenues amounted to 1.8 billion dinars, down 13.1% from the last fiscal year; Total revenues amounted to 17.2 billion dinars, down 16.2%. Total expenditures amounted to 21.1 billion dinars, down 3.2% from the previous year. The deduction share for the Future Generations Fund amounted to 1.7 billion dinars.

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The state's final account for the fiscal year ending on March 31, 2020 showed an actual deficit of 5.64 billion dinars, after deducting the reserve ratio for future generations, an increase of 68.6% over the final account of the previous fiscal year, and a 31.8% decrease from the budget estimates for the fiscal year ending in March 31, 2020, the average actual price of a barrel of oil is $ 61.12.

The Ministry of Finance said that salaries and subsidies accounted for 76% of total expenditures, while oil revenues decreased 16.6% from the last fiscal year, and the custody account balance decreased by 665 million dinars from the previous fiscal year. On the other hand, actual capital expenditures represented 12% of total expenditures.

Oil revenues amounted to 15.3 billion dinars, a decrease of 16.6% from the previous year, at a time when non-oil revenues amounted to 1.8 billion dinars, down 13.1% from the last fiscal year; Total revenues amounted to 17.2 billion dinars, down 16.2%. Total expenditures amounted to 21.1 billion dinars, down 3.2% from the previous year. The deduction share for the Future Generations Fund amounted to 1.7 billion dinars.

Finance Minister Barak Al-Sheitan said: “The approval by the Council of Ministers, in its meeting held on July 20, 2020, of draft laws to approve the final accounts of the state’s financial management, the attached bodies and most independent bodies came in support of the Ministry of Finance. To enable it to close the accounts for the fiscal year 2019/2020 before the date specified in the constitution. ”

Al-Shaitan added: “The recorded deficit, amounting to 5.6 billion dinars, after calculating the percentage determined according to Law No. 106 of 1976 for the benefit of the future generations reserve, which is 10%, is considered a natural deficit that came as a result of the decrease in the average price of a barrel of oil in the fiscal year 2019/2020, compared to In the previous fiscal year 2018/2019 ».

He continued, saying: “The government has submitted a bill to the legislative authority to amend Law No. 106 of 1976, which provides for the suspension of deduction of 10% for the benefit of the Future Generations Reserve Fund in cases of disability, and that if it is approved and applied to the final account of the state’s financial administration for the fiscal year 2019 / 2020, the budget deficit will decrease to 3.9 billion dinars.

Al-Sheitan continued: “Perhaps one of the ministry’s top priorities in the current stage is to continue to deal with the covenant account file, which witnessed a significant improvement over the past year, as the balance of the covenant’s assets account reached an amount of 3.6 billion dinars, down by 665 million dinars from the balance in the previous fiscal year. , And the amount of 4.3 billion dinars, thanks to the efforts of workers in the ministry and the cooperation of all government agencies.

He concluded, saying: “The final account was transferred to the esteemed National Assembly for approval and approval. The government is fully prepared to discuss the final account with the legislative authority, and to proceed with the implementation of more realistic solutions to develop public finances. I would also like to express my sincere thanks and gratitude. To the Council of Ministers esteemed for its support to the Ministry of Finance, so that it can close the accounts of the fiscal year 2019/2020 before the date specified in the constitution, and to the role of my brothers working in the Ministry of Finance and the financial system in the country, who despite the circumstances that our beloved country is going through, they have not saved They made efforts during the past months, but they submitted it; In compliance with the law and the requirements of the regulatory agencies, for the good of our dear country and its interest.

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