Kuwait City: The country’s budget deficit has narrowed by 94 percent in two months due to rising oil prices. According to the budget, oil revenues were expected to reach $ 2.78 billion in April and May.
However, it received $ 5.7 billion. The budget was prepared at a price of $ 65 a barrel. However, it was priced above $ 110. During the first two months of this financial year, the average price of Kuwaiti oil was regarding $ 112.162 per barrel. The average monthly oil revenue is expected to be $ 1.39 billion. However, it received $ 2.7 billion.
Officials say the current rise in inflation is in the context of the Russia-Ukraine war and will not be permanent. It now sees huge fluctuations that increase by more than ten dollars a day and decrease by more than six dollars the next day.
The sharp fall in oil prices following the Kovid crisis has created a major crisis for countries, including Kuwait, which sees oil prices as its main source of income.
It has also decided to increase petroleum production from next month. That too will lead to an increase in revenue. Various ministries are pursuing cost-cutting measures to address budget deficits and liquidity shortages.
The Ministry of Finance has directed to avoid unnecessary expenditure on printing, security, cleaning services, travel, hotel, data entry service, publications, hospitality, parties, and gifts. Despite the increase in revenue for the time being, the Finance Ministry has directed various departments not to compromise on austerity measures.
