- KUWAIT CITY: Kuwait’s budget surplus in the first three months of its 2011-12 fiscal year reached 5.6 billion dinars ($20.3 billion), larger than a year ago on higher than expected oil revenue and lower spending, finance ministry data showed.
The surplus accounted for 15.2 percent of the OPEC member’s gross domestic product, according to Reuters calculations. It stood at 3.2 billion dinars in the same period a year ago and at 4.2 billion in April-May.
Revenue of the world’s sixth-largest oil exporter was 7.1 billion dinars in April-June, while spending came at 1.5 billion dinars, below a projected 4.8 billion, the data showed.
Oil revenue reached 6.8 billion dinars in April-June, accounting for 96 percent of the total. The 2011-12 budget is based on an oil price of $60 per barrel.
Brent crude prices have been floating between $98 and $127 per barrel since the fiscal year started in April.
On Thursday, oil prices fell over $3 per barrel with US futures touching $82.75 per barrel as a combination of signals heightened worries about global economic growth.
Since 2004, Kuwait’s budget spending has tripled to a record 19.4 billion dinars planned for the 2011-12 fiscal year, which started in April, with expenditure on wages rising almost as fast.
Revenue was set at 13.4 billion dinars in the 2011-12 budget, approved by parliament in June, bringing the projected deficit to 5.99 billion, or 16.2 percent of gross domestic product, according to Reuters calculations.
However, the 2011-12 revenue estimate is very conservative given this year’s surge in the price of oil.
A Reuters poll in June forecast Kuwait’s economy would grow 4.4 percent in 2011 and generate a fiscal surplus of 20.2 percent of gross domestic product in 2011-12.

