General budget for the financial year 2019-2020 (FY2019/20) that began on 1 April of this year has recorded a deficit of KD1.1 billion during the first three months (1April to 30 June).
The recorded deficit is after the mandatory 10 percent of revenue transfer to the Future Generations Fund (FGF) had been made. The deficit during the first-quarter, represents about 14 percent of the total deficit of KD7.7 billion expected for the whole year after deductions were made to the FGF.
The deficit in the first three months of KD1.1 billion is considered a decline or KD800 million, or around 42 percent, from the predicted deficit of KD1.9 for the first quarter. A main reason for the fall in deficit comes from the price of oil, which in the first three months of the year has been trading at a higher price than the US$55 that the Ministry of Finance had envisioned in budget for FY2019/20.
In presenting the State’s final account for the FY2018/19 to parliament, the finance minister had shown a total deficit of KD3.3 billion, after deductions were made to the FGF. This deficit was a decrease of 31 percent from the final closing account for FY2017/18, as well as a decline 63.6 percent of the budget estimated for the fiscal year that ended on 31 March, 2019.