Kuwait turns to deficit of 1.6 bln dinars in FY 2023/24, finance ministry says

Kuwait registered a deficit of 1.6 billion dinars ($5.23 billion) in fiscal year 2023/24 from a surplus of 6.4 billion dinars in the previous year, its finance ministry said in a statement on Wednesday.

Kuwait’s oil revenues fell to 21.528 billion dinars in FY 2023/24, based on an oil price of $86.36 a barrel. This was a fall in revenue from 26.713 billion dinars in the previous year.

The Gulf state has had to comply with production cuts by the OPEC+ producer group amid lower oil prices this year while making slow progress on diversifying revenue sources compared with its Gulf neighbors.

Expenditures reached 25.206 billion dinars compared to 22.370 billion dinars in the previous year. Kuwait’s fiscal year ends on March 31.

Kuwait holds some of the world’s largest oil reserves and has strong fiscal and external balance sheets, but political and institutional gridlock has hampered investment and reforms aimed at reducing its heavy reliance on oil.