Kuwaiti parliament approves budget with a $10.5 billion deficit

The Kuwaiti Ummah nation council ( parliament) has approved a budget with a deficit of 3.08 billion Kuwaiti dinars ( $ 10.5 billion) for the fiscal year 2005- 2006, which expires in March next year.

This deficit is filled from the government reserves, while Kuwait has achieved record surpluses in the budget, as a result of oil prices increase, by 90% of the state's revenues.

Economists expect Kuwait to register a surplus in the budget for the fiscal year 2005- 2006 should crude oil prices remain at high levels.

The Kuwaiti official News agency KUNA said that the budget draft estimated at $ 21 for one barrel of oil and estimated the revenues at 4.606 billion dinars ($ 15.77 billion) and spending at 7.231 billion dinars ($ 24.758) indicating a deficit estimated at 2.625 billion Dinars ($ 8.987 billion).

This deficit accumulates to 3.08 billion dinars ($ 10.545 billion) if a compulsory government deposit is made of 460.6 million dinars ($ 1.579 billion), representing 10% of the revenues deposited in the "generations funds" for withstanding difficult times in future.