Oil Revenues Increase Does Not Cover Budgetary Obligations, Says Finance Minister

Minister of Finance and Minister of State for Economic Affairs and Investment, Khalifa Hamadeh, affirmed that the temporary increase in oil revenues does not cover the budgetary obligations. The issuance of bonds and other solutions are temporary measures that must be taken to fulfill the immediate obligations represented by salaries and subsidies, which constitute more than 71 percent of the total expenditures in the budget for the fiscal year (2022/2021), Hamadeh said in a press statement on Wednesday.

He also noted that the breakeven price in the 2022/2021 budget is USD 90, explaining that the total oil revenues at the end of the fiscal year should reflect the rate of USD 90 per barrel of crude oil per day in the fiscal year until the budget deficit becomes zero.

The minister stressed the need to address the scarcity of financial resources and the depletion of liquidity in the treasury (the general reserve fund) as soon as possible, with the need to be accompanied by radical economic and financial reforms that contribute to reducing expenditures and increasing non-oil revenues. He also expressed confidence in cooperating with the National Assembly to overcome the obstacle and support the coming reforms.

 

SOURCE  TIMESKUWAIT

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