Kuwait city: Minister of Finance, Dr. Yaqoub Al-Refaei, unveiled the draft state budget for the fiscal year 2026-2027, projecting a fiscal deficit of KD 9.8 billion (approx. USD 31.9 billion), a 54.7 percent rise over the current fiscal year's deficit.
According to Kuwait News Agency, Al-Refaei estimated that the total expected revenues would be KD 16.3 billion (about USD 53.1 billion), marking a 10.5 percent year-on-year decline. The Minister disclosed that oil revenues were budgeted at KD 12.8 billion (approx. USD 41.7 billion), showing a 16.3 percent contraction in comparison to the current budget, which ends on March 31, 2026.
In a trend towards fiscal diversification, non-oil revenues are anticipated to increase by 19.6 percent to KD 3.5 billion (USD 11.4 billion), Al-Refaei added. He noted that total expenditure is expected to reach KD 26.1 billion (approx. USD 85 billion), with salaries and subsidies comprising 76 percent, capital expenditures 11.8 percent, and other expenditures 12.2 percent.
Al-Refaei clarified that the FY 2026-2027 budget is based on a conservative oil price assumption of USD 57 per barrel. However, he noted that Kuwait's fiscal break-even price, the valuation required to balance the budget, is significantly higher at USD 90.5 per barrel.