KUWAIT – The Kuwaiti fiscal surplus for 2011/2012 is expected to come in high due to budget-surpassing crude prices, according to a key bank in Kuwait. Crude price projections in Kuwait were budgeted at $60 for 2011/2012, although the actual price averaged about $109 per barrel or 80 percent higher than projections, according to a National Bank of Kuwait (NBK) study. Surging oil revenues coupled with decreased actual expenditures to create a higher than expected surplus in the Gulf emirate. NBK forecasted a surplus of between KD11.3 billion and KD12.4 billion (or $40 to $44.6 billion), assuming low, base and high prices. Actual figures have not been released by Kuwaiti officials, but NBK forecasted Kuwaiti oil earnings to hit about KD28.2 billion due to soaring oil prices, an almost 45 percent increase over the previous year. Spending is forecasted to come in 5 to 10 percent below budgeted figures, creating a surplus of KD11.4 billion to KD12.4 billion before allocations are made to the Reserve Fund for Future Generations. Based on official figures, the 11-month surplus stands at KD16.1 billion, although end-of-year spending generally results in a decrease. The forecasted surplus stands in stark contrast to the budgeted deficit of KD5.9 billion, which was then expected to fall to KD7.33 billion post-RFFG allocations. Kuwaiti revenue projections came in at KD13.445 billion, based on oil revenues of about KD12.3 billion and spending of KD 19.435 billion. Based on low oil prices, NBK forecasted revenue to hit KD29.8 billion, with high oil prices pushing those revenues to KD29.9 billion. A surplus is forecasted for 2012/2013 as well, at about KD10.2 billion and almost KD7.2 billion post-RFFG allocations. – Agencies
