Kuwait has forecast a fiscal deficit of KD9.8 billion ($31.9 billion) in its draft 2026-2027 budget, a sharp 54.7 percent rise over the current fiscal year's deficit.
Finance Minister Dr Yaqoub Al-Refaei estimated that the total expected revenues at KD16.3 billion ($53.1 billion), representing a 10.5 percent year-on-year decline, said a KUNA report.
The minister disclosed that oil revenues were budgeted at KD12.8 billion ($41.7 billion), a 16.3 percent contraction compared to the current budget ending March 31, 2026.
In a positive trend for fiscal diversification, non-oil revenues are expected to rise by 19.6 percent to KD3.5 billion ($11.4 billion), he added.
He noted that the total expenditure is expected to hit KD26.1 billion ($85 billion) with salaries and subsidies comprising 76 percent, capital expenditures 11.8 percent, and other expenditures 12.2 percent.
Al-Refaei clarified that FY 2026-2027 budget is based on a conservative oil price assumption of $57 per barrel. The Minister, however, noted that Kuwait fiscal break-even price -- the valuation required to balance the budget -- is significantly higher at $90.5 per barrel.
