Despite higher oil prices, the state budget remained in the red recording a deficit of KD1.7 billion during the first seven months of the current fiscal year (2019/2020), after mandated transfer of 10 percent of revenues to the fund for future generations was made. This marked a sharp decline when compared to the corresponding period in the last fiscal year (2018/2019), when the general budget recorded a surplus of KD1.9 billion.
Total revenues generated in the period from April to the end of October this year dropped by 16.4 percent to reach KD10.13 billion compared to KD12.12 billion in revenues recorded within the first seven months of fiscal year 2018/2019. Meanwhile, total expenses and commitment in the first seven months of this year increased by 21 percent to reach KD10.878 billion compared to KD9 billion spent in the same period last year.
On the revenue side, the state collected KD9.25 billion in the first seven months of the current fiscal year 2019/2020, which accounted for 66.7 percent of the estimated full-year revenues of KD13.8 billion.The state also received about 45.2 percent of the estimated non-oil revenues in the budget during the seven months valued at KD881.6 million compared to KD1.948 billion estimated for the full fiscal year.
In terms of disbursement, the government spent about 48.3 percent of its financial allocations valued at KD10.878 billion compared to the estimated expenses of KD22.5 billion for the whole year. The proportion of government expenditure amounted to 52.1 percent (KD10.01 billion) compared to KD 19.228 billion dinars estimated in the budget.