Kuwait recorded a budget surplus of KD 2.7 billion in the fiscal year 2002-03, according to the provisional figures of the closing accounts of the budget. This huge amount of budget surplus was generated due to a substantial rise in the level of Oil Revenue, Tax Revenue and due to significant level of under spending of the allocated funds.
Kuwait Budget recorded Budget Surplus for the fiscal year 2002-03, as per the provisional figures of the closing accounts of the budget. The provisional figures revealed that, in the fiscal year 2002-03, Kuwait actually reached a revenue level of KD 6.2 billion, whereas, the revenue level proposed in the budget, was of KD 3.5 billion. This way, Kuwait generated a budget surplus of KD 2.7 billion.
This budget surplus reflected a 76.6% increase in revenue.
Reason behind the Budget Surplus :
Kuwait generated this high level of budget surplus, mainly because of High Oil Prices. As the Oil Prices rose, Kuwait experienced a significant increase in Oil Revenue. In the fiscal year 2002-03, Kuwait recorded Oil Revenue of KD 5.5 billion. This Oil Revenue figure suggested a 85.2% increase over oil revenue figure,proposed in the budget.
Kuwait recorded such high level of budget surplus as, many departments and Ministries under spent their approved budget. The allocated funds were not totally utilized. The provisional figures revealed an under spending of KD 500.6 million.
Other than Oil Revenue, the other Revenue Figures also experienced an increase. The actual figure of collected revenue stood at the level of KD 720.5 million, whereas, the revenue figure proposed in the budget was KD 552.2 million.
Kuwait achieved high level of budget surplus in the fiscal year 2002-03, as the Tax Revenue collected by the government increased compared to the fiscal year 2001-02. In 2002-03, Kuwait earned Tax Revenue of KD 136.5 million, whereas, the actual Tax Revenue figure of the fiscal year 2001-02 was KD 110.6 million. In the fiscal year 2002-03, Kuwait succeeded to achieve significantly high level of Tax Revenue, because, in this year, all the tax segments experienced increase in revenue. In this year, revenue earned from Income Tax recorded 47.5% increase, revenue earned from Property Tax experienced 38.6% increase, while revenue earned from taxes on International Trade recorded a 17.2% increase.