KUWAIT, Jan 14 (KUNA) -- The State of Kuwait's budget for 2020-2021 will have a revenue of KD 14.8 billion (USD 48.7 billion) and an expenditure of KD 22.5 billion (USD 74 billion), while the deficit will be at KD 9.2 billion (USD 30 billion), said the Minister of Finance Mariam Al-Aqeel Tuesday.
In a press conference dedicated to the announcement of the budget, Minister Al-Aqeel -- also Acting Minister of State for Economic Affairs -- said that the expenditure was based on the average price of the Kuwaiti oil at around USD 55 per barrel.
She indicated that around KD 12.9 billion (USD 42.5 billion) of the income was form oil-based revenues while KD 1.87 billion (USD 6.1 billion) non-oil based.
Minister Al-Aqeel stressed that draft budget law for the financial year 2021-2020 kept the expenses ceiling at KD 22.5 billion for the second year in a row, after it was approved by the cabinet.
The financial deficit in the 2020-2021 budget is due to Kuwait's reduction of its oil production in line with OPEC decisions and low oil prices.
The break-even point in the budget after cutting 10 percent of public revenues for the benefit of the future generations fund reached USD 86 a barrel.
The new budget project has KD 390 million (USD 1.2 billion) to settle a previous financial custody, based on the payment schedule and agreed with the National Assembly.
On the expenses in 2020 -2021 budget, Al-Aqeel said the salaries and subsidies formed 71 percent, while capital expenses reached 16 percent and 13 percent for other expenses. (end) kd.aam.sam