Public sector wages in Kuwait are equivalent to about 85 percent of the country's oil revenues, its finance minister was quoted by state news agency KUNA as saying. “This reflects the seriousness of the situation, if the rapid increase in wages continues,” Mustapha Al-Shamali told parliament, citing a government statement, before the house approved financial benefits for teachers Monday. Oil income in the world's sixth largest oil exporter provides more than 90 percent of its budget revenues. Shamali added that wage increases posed a “real danger” to the state budget, and that a fast rise in spending might cause a Since 2004, Kuwait's budget spending has tripled to a record 19.4 billion dinars ($70.3 billion) planned for the 2011-12 fiscal year, which started in April, with expenditure on wages rising almost as fast. Kuwait's ruler and its central bank governor called on the government this summer to correct imbalances in the oil-reliant economy and trim budget waste. A string of strikes in Kuwait in the past several months has added to upward pressure on wages. Employees of the national airline briefly went on strike in late October; earlier in the month, customs service employees staged a two-day strike, halting oil shipments from ports. Meanwhile, oil prices climbed to near $100 per barrel Tuesday following a series of positive reports about the US economy. In midday trading benchmark crude rose 36 cents to $98.50 per barrel in New York. Crude jumped as high as $99.34 at one point. Brent crude, which is used to price many foreign oil varieties, rose 45 cents to $112.34 per barrel in London. Prices jumped after US said that consumer spending rose in October for fifth straight month.
