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

In its monthly follow-up report for the State’s Financial Administration until the end of October 2019 (as published on its website), the Ministry of Finance indicates that total realized revenues until the end of the 7th month of the current Fiscal Year 2019/2020 scored KD 10.132 billion, about 64.1% 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 31/10/2019 were at KD 9.251 billion, i.e. 66.7% of the estimated oil revenues for the entire current fiscal year in the amount of KD 13.863 billion, or about 91.3% of total collected revenues. The average Kuwaiti oil price for the first seven months of the current fiscal year 2019/2020 scored US$ 64.6 per barrel. An amount of KD 881.603 million was collected from non-oil revenues during the same period, a monthly average of KD 125.943 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 monthly average, will be less for the entire current fiscal year by nearly KD 437.1 million than the estimated.

Expenditures allocations for the current fiscal year were estimated at approximately KD 22.5 billion, of which an amount of KD 8.491 billion has been actually spent according to the bulletin until 31/10/2019.  An amount of KD 1.526 billion has been obligated and considered as spent, raising the total expenditures -the actual and the obligated- to KD 10.017 billion. The monthly average of the actual expenditures and the obligated is about KD 1.431 billion. Though the bulletin concludes that the budget achieved at the end of the 7th month of the current fiscal year a KD 115.1 million 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 5 months of the fiscal year, with the great possibility of turning into a deficit if oil prices continue at the current level, in addition to the possibility of a repeated increase in actual expenditures over the estimated allocations expenditures in the budget, which was a precedent in the previous fiscal year.