Kuwait has introduced a new national budget that shows gradual economic change. The budget forecasts non-oil revenues reaching 2.92 billion Kuwaiti dinars. This figure equals around 9.44 billion US dollars. Non-oil revenues show modest growth compared to the previous year’s results. The 9% increase highlights the government’s attempt to reduce dependence on oil.
At the same time, Kuwait expects oil income to decline. The government forecasts a 5.7% drop in oil earnings. Total oil revenue is projected to reach 15.3 billion Kuwaiti dinars. Officials based this estimate on an average oil price of 68 dollars per barrel. Despite the drop, oil remains the country’s main income source.
Non-oil income will now form 16% of total revenues. That is a slight rise from 14.3% in the previous fiscal year. This confirms that non-oil revenues show modest growth. It also reflects the slow but steady pace of Kuwait’s economic reforms.
To support this shift, the government introduced several key measures. It announced a 15% corporate tax. This tax will apply to large global companies operating in Kuwait. The decision aligns with international tax standards.
Kuwait will also enforce new sin taxes. These include taxes on tobacco, sugary drinks, and energy drinks. Authorities expect this move to increase state income. Furthermore, the government plans to revise public service fees. Water and electricity charges will rise. These adjustments may generate an extra 150 to 200 million dinars.
However, Kuwait still faces a large budget deficit. The expected shortfall stands at 6.3 billion Kuwaiti dinars. That is about 20.4 billion US dollars. Most spending still goes to public wages and subsidies. These two items take nearly 80% of the total budget. Only 9% goes toward infrastructure and development projects.
To close the gap, the country approved a new borrowing law. It gives the government power to raise 30 billion dinars through loans. These funds will finance large national projects. Major plans include expanding the airport and building Mubarak Al-Kabeer Port.
In summary, non-oil revenues show modest growth in Kuwait’s economy. The country now focuses on balancing its financial future. Although oil still dominates, economic reforms aim to change that reality. The journey remains long, but small gains show hope.
