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Kuwait says fiscal status strong despite deficit

The country has strong financial reserves that act as a buffer to offset the shortage.

Despite recording a budget deficit of KWD2.4 billion in the outgoing fiscal year, Kuwait’s Deputy Prime Minister and Minister of Finance, Anas Al Saleh, assures that his country’s fiscal status remains strong.

In response to comments regarding the budget deficit that Kuwait recorded in the 2014/2015 fiscal year – the first in 15 years – Al Saleh explained that his country has strong financial reserves that act as a buffer to offset the shortage.

On his Twitter account, AlSaleh adds that the country’s revenues are not limited to oil income; they include customs levies and fees,as well as other tariffs, Youm7 reports.

He explains that the loans Kuwait extends to other countries are being financed by special bodies and don’t affect the state’s budget.

Furthermore, the Minister emphasises that Kuwait’s foreign aid pledges are a commitment as most rich countries allocate part of their income for foreign assistance. He notes his country’s annual foreign assistance doesn’t exceed 2.1 per cent of the general budget.

Al Saleh makes it clear that it’s not possible to withdraw money from the nation’s Future Generations Fund to finance the budget deficit.

(KWD=AED12.12, at the time of publishing)