The Monthly Report of the State’s Financial Administration Accounts – August 2019

In its monthly follow-up report for the State’s Financial Administration until August 2019 (as published on its website), the Ministry of Finance indicates that total realized revenues until the end of the fifth month of the current Fiscal Year 2019/2020 scored KD 7.359 billion, about 46.5% higher than total estimated revenues for the entire fiscal year in the amount of about KD 15.812 billion.

In details, actual oil revenues until 31/08/2019 scored about KD 6.776 billion, i.e. 48.9% of the estimated oil revenues for the entire current fiscal year in the amount of KD 13.863 billion, or about 92.1% of total collected revenues. The average Kuwaiti oil price for the the first five months of the current fiscal year 2019/2020 scored US$ 65.9 per barrel. An amount of KD 583.033 million was collected from non-oil revenues during the same period, a monthly average by KD 116.607 million, while the total estimated amount for the entire current fiscal year was about KD 1.948 billion. This means that the realized amount, if it continues at the same level, will be less for the entire current fiscal year by about KD 549.1 million than the estimated.

Expenditures allocations for the current fiscal year were estimated at about KD 22.5 billion, of which an amount of KD 4.830 billion has been actually spent according to the bulletin until 31/08/2019.  An amount of KD 326 million has been obligated and considered as spent, raising the total expenditures -the actual and the obligated- to KD 5.156 billion. The monthly average expenditure is about KD 1.031 billion.

Though the bulletin concludes that the budget achieved at the end of the 5th month of the current fiscal year a KD 2.203 billion surplus before deducting the 10% of total revenues to the favor of the Future Generations Reserve, we publish it without recommending relying on it. The monthly spending average will increase significantly by the end of the fiscal year. The surplus figure by the end of the fiscal year relies mainly on oil prices and production volume in the remaining 7 months of the fiscal year, with the possibility of turning into a deficit if oil prices continue at the current level, and the increase in actual expenditures over the estimated allocations expenditures in the budget, that was a precedent in the previous fiscal year.