Kuwait projects a healthy 30% revenue hike for the 2017-18 financial year (beginning 1 April). The deficit will fall by 18.4% from the 2016-17, according to preliminary details on the state budget approved by the Kuwait cabinet this week. The budget still has to go before parliament, which can be expected to fine-tune at least some of the figures.

Outlining the main features of the 2017-18 budget on 30 January, Deputy PM Anas al-Salih said that the new budget is based on an oil price of $45/B. This is $10/B or 29% higher than the $35/B oil price in the 2016-17 budget. In reality Kuwait Export Blend crude averaged $43/B for the first nine months of the financial year 2016-17 (ie April-December 2016) and is on track to average $45/B for 2016-17 as a whole, given the jump in prices since the start of December (see p20). (CONTINUED - 780 WORDS)