Kuwait raises 07/08 surplus forecast
The Middle East's fourth largest oil exporter is expecting a surplus of KWD10.47 billion (Dh133bn) after 11 months of its fiscal year to March, according to the data obtained by Reuters on Monday.
The Gulf Arab state predicted in February a surplus of KWD9.545 billion based on 10 months of the fiscal year.
Revenues surged to KWD17.03 billion after eleven months, compared to KWD15.35 billion a month ago. The government initially forecast only KWD8.3 billion, but based the budget on a conservative oil price average of $36 per barrel.
Oil rose to a record near $112 on Monday.
Kuwait's total expenditures were KWD6.56 billion after 11 months, about half the initial projection of KWD11.3 billion, the data showed.
The surplus is invested by state-run Kuwait Investment Authority (KIA), which had at least $213 billion (Dh782bn) in assets under management on March 31 2006, according to official figures.
Kuwait invests 10 per cent of its budget in a future generation budget, a nest egg for the time when its vast oil resources will dry up.
After the nest egg payment, the 2007/08 surplus will be KWD8.77 billion, according to the data. The government had originally forecast a deficit of KWD3.8 billion when parliament passed the budget in July. (Reuters)
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