Kuwait recorded a financial deficit of 7.14 billion dinars (about $23 billion) in its budget for the fiscal year ending March 31, 2026, with declining oil revenues and rising government spending.

Data from the Kuwaiti Ministry of Finance showed revenues fell by 25.4% year-on-year to 16.5 billion dinars, while spending rose by 2.1% to 23.6 billion dinars.

The Minister of Finance explained that the widening deficit, which increased more than six-fold compared to the previous fiscal year, is mainly due to a decline in oil revenues by about 30%, despite a limited improvement in non-oil revenues.

Salaries and subsidies accounted for 81.5% of total government spending, while capital spending accounted for only 7.5% of total expenditures, reflecting the continued dominance of current spending in the budget structure.

Advertorial

Advertorial