Kuwait has revised up its budget assumptions for the current 2022-23 fiscal year (from 1 April 2022) with headline revenues now expected to come in some KD4.6bn ($15bn) higher than those envisaged by the previous version of the budget. This is largely thanks to higher oil prices and thus revenues.
That said, even plugging in the new forecast oil price of $80/B the revised budget still projects a $400mn deficit this year. Luckily for Kuwait, that oil price estimate also appears on the low side and with Kuwait Export Blend (KEB) having averaged $106/B so far this financial year it is on track for a clear surplus. However, that the breakeven oil price is above $80/B is a concern for Kuwait and underlines the unsustainable nature of its expenditure. (CONTINUED - 128 WORDS)