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Kuwait’s cabinet has slashed its revenue and expenditure projections in the draft budget for the 2015-16 fiscal year starting 1 April.
The budget, approved by the cabinet on 26 January, has opted for austerity and rationalization of expenditure, in the wake of the 55%-plus plunge in oil prices since June 2014. But despite the resulting fall in oil revenues, this budget is development-oriented, Finance Minister Anas al-Salih said in a press conference this week, and puts a special emphasis on education, health, social welfare and security.
The 2015-16 budget projects in real terms a whopping 42% fall in total revenue to KD12.1bn ($41.7bn), and a 20.7% decline in total expenditure to KD19.1bn ($65.9bn) from their 2014-15 levels. With the fall in the projected revenue, the cabinet has allocated only 10%, or KD1.2bn ($4.1bn), of total revenue to the Reserve Fund for Future Generations (RFFG), instead of the 25% allocation introduced two years ago. The transfer of 25% of total revenue to the RFFG in the 2014-15 amounted to KD5.0bn ($17.3bn).
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