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Kuwait may record USD 16 bln in budget surplus |
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Tuesday, 12 January 2010 22:40 |
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KUWAIT, Jan 12 (KUNA) -- Kuwait is expected to record a 2010-2011 state budget surplus in the vicinity of KD 4.8 billion (USD 16.75 billion), according to a recent economic report.
The prediction is based on a supposition putting oil prices in the range of USD 56 and 79 during the new fiscal year, indicated the report, released by the National Bank of Kuwait (NBK). In spite of local press reports claiming that governmental spending could surge up by roughly 35 percent to KD five billion for the coming FY, the state budget could remain balanced or record a surplus of KD 4.8 billion, it said. The predicted positive result of the Kuwaiti state budget for a couple of successive years comes in contradiction with the financial position of world state budgets, which would surely involve major spending cuts, it added. Oil prices have been markedly up and down since early December 2009 despite relative stability in November, the report said. Kuwaiti oil prices dwindled by eight US dollars to USD 71 in the first half of December before rebounding to USD 77 by the end of the month, and to USD 80 on January 4, 2010, it showed. The economic report ascribed the fall in early December to the growing strength of the US dollar which hiked by four percent in the first half of December. - Kuna
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