Identifier
Created
Classification
Origin
07KUWAIT488
2007-04-04 13:50:00
UNCLASSIFIED
Embassy Kuwait
Cable title:
KUWAIT BUDGET SURPLUS ESTIMATED AT $17.5 BILLION
how-toVZCZCXYZ0004 PP RUEHWEB DE RUEHKU #0488 0941350 ZNR UUUUU ZZH P 041350Z APR 07 FM AMEMBASSY KUWAIT TO RUEHC/SECSTATE WASHDC PRIORITY 8698 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
UNCLAS KUWAIT 000488
SIPDIS
SIPDIS
DEPT FOR NEA/ARP, EB
E.O. 12958: N/A
TAGS: ECON EFIN EPET KU
SUBJECT: KUWAIT BUDGET SURPLUS ESTIMATED AT $17.5 BILLION
AT END OF FY 2006-2007
UNCLAS KUWAIT 000488
SIPDIS
SIPDIS
DEPT FOR NEA/ARP, EB
E.O. 12958: N/A
TAGS: ECON EFIN EPET KU
SUBJECT: KUWAIT BUDGET SURPLUS ESTIMATED AT $17.5 BILLION
AT END OF FY 2006-2007
1. Kuwait's fiscal year ended on 31 March, with the
government budget surplus estimated at $17.5 billion
(approximately 15% of GDP and 50% of actual budget
expenditures). Oil revenue of $51.5 billion (est.) comprised
about 95% of total government revenue. The projected
government deficit of $9.1 billion for fiscal year 2006-2007
had been based on a hypothetical oil price of $36 per barrel
and a production level of 2.247 million barrels per day
(Kuwait's OPEC quota). In fact, the average price for
Kuwaiti export crude for the fiscal year was $58.40 and
actual production was closer to 2.5 million barrels per day.
Actual budget expenditures were about $36.7 billion, less
than the $38.9 billion that the Government initially
projected. This marks Kuwait's eighth consecutive year of
generating a budget surplus.
2. For the 2007-2008 fiscal year, the Government projects
$29.12 billion in estimated revenue, again based on
$36-per-barrel oil produced at Kuwait's OPEC production
quota, and $36.58 billion in expenditures. At this
expenditure level, the break-even price for oil is about $40,
assuming an average production level of 2.5 million barrels
per day. Thus, the 2007-2008 budget surplus is again
expected to be significant.
********************************************* *
For more reporting from Embassy Kuwait, visit:
http://www.state.sgov.gov/p/nea/kuwait/?cable s
Visit Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************* *
Tueller
SIPDIS
SIPDIS
DEPT FOR NEA/ARP, EB
E.O. 12958: N/A
TAGS: ECON EFIN EPET KU
SUBJECT: KUWAIT BUDGET SURPLUS ESTIMATED AT $17.5 BILLION
AT END OF FY 2006-2007
1. Kuwait's fiscal year ended on 31 March, with the
government budget surplus estimated at $17.5 billion
(approximately 15% of GDP and 50% of actual budget
expenditures). Oil revenue of $51.5 billion (est.) comprised
about 95% of total government revenue. The projected
government deficit of $9.1 billion for fiscal year 2006-2007
had been based on a hypothetical oil price of $36 per barrel
and a production level of 2.247 million barrels per day
(Kuwait's OPEC quota). In fact, the average price for
Kuwaiti export crude for the fiscal year was $58.40 and
actual production was closer to 2.5 million barrels per day.
Actual budget expenditures were about $36.7 billion, less
than the $38.9 billion that the Government initially
projected. This marks Kuwait's eighth consecutive year of
generating a budget surplus.
2. For the 2007-2008 fiscal year, the Government projects
$29.12 billion in estimated revenue, again based on
$36-per-barrel oil produced at Kuwait's OPEC production
quota, and $36.58 billion in expenditures. At this
expenditure level, the break-even price for oil is about $40,
assuming an average production level of 2.5 million barrels
per day. Thus, the 2007-2008 budget surplus is again
expected to be significant.
********************************************* *
For more reporting from Embassy Kuwait, visit:
http://www.state.sgov.gov/p/nea/kuwait/?cable s
Visit Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************* *
Tueller