For the first time since 1999-2000, Kuwait has posted an “actual” budget deficit. The KD2.31bn ($8.0bn) deficit for fiscal year 2014-15 after transfers to state reserves is almost entirely due to the $22/B fall to $81/B in the average price Kuwait received for its crude exports. This meant crude revenues for the year ended 31 March 2015 were down almost KD7bn at KD22.5bn. Even with the fall in prices, Kuwait remains reliant on oil exports for over 90% of revenue.

Despite the collapse in revenue, spending actually rose by 7% in real terms to just over KD21bn for 2014-15. Indeed the KD2.1bn nominal rise in spending is almost equal to the size of the deficit. (CONTINUED - 719 WORDS)