KUWAIT, Feb 10 (KUNA) -- Minister of Finance, Dr. Yaqoub Al-Refaei unveiled Tuesday the draft state budget for the fiscal year (2026-2027), projecting a fiscal deficit of KD 9.8 billion (approx. USD 31.9 billion), a sharp 54.7 percent rise over the current fiscal year's deficit.
In a press statement, Al-Refaei estimated that the total expected revenues at KD 16.3 billion (about USD 53.1 billion), representing a 10.5 percent year-on-year decline.
The Minister disclosed that oil revenues were budgeted at KD 12.8 billion (approx. USD 41.7 billion), a 16.3 percent contraction compared to the current budget ending March 31, 2026.
In a positive trend for fiscal diversification, non-oil revenues are expected to rise by 19.6 percent to KD 3.5 billion (USD 11.4 billion), he added.
He noted that the total expenditure is expected to hit KD 26.1 billion (approx. USD 85 billion): with salaries and subsidies comprising 76 percent, capital expenditures 11.8 percent, and other expenditures 12.2 percent.
Al-Refaei clarified that FY 2026-2027 budget is based on a conservative oil price assumption of USD 57 per barrel. The Minister, however, noted that Kuwait fiscal break-even price -- the valuation required to balance the budget -- is significantly higher at USD 90.5 per barrel. (end) ak.ibi