Minister of Finance Anas Al-Saleh announced Monday that the state budget forecasts an income of KD 12 billion (USD 40.8 billion) for the fiscal year 2015/2016, to start March 1, 2015.
The oil revenues are expected to hit KD 10.5 billion (USD 35.9 billion) based on a hypothetical oil price estimated at USD 45 a barrel and a projected production of 2.7 million barrels per day, the Minister said in a press conference.
About KD 1.2 billion (USD 4 billion), 10 percent of the oil revenues, would be deducted to the future generations fund, he stated. He pointed out that the oil revenues make up 88 percent of the projected the state income and the residue, about KD 1.4 billion (USD 4.8 billion), would come from non-petroleum sectors.
Al-Saleh said the oil revenues declined in the proposed budget by 43.6 percent or KD 8.2 billion (USD 27.7 billion) but the non-petroleum sectors' revenues increased by 15 percent compared with that of the last year.
He unveiled that the overall spending in the new budget is estimated at KD 19 billion (USD 64.6 billion), down KD 4.1 billion (USD 13.9 billion) or 17.8 percent. The proposed state budget posts a deficit of KD 8.2 billion (USD 27.8 billion) in the coming FY, the minister said.
The salaries and wages are estimated at KD 9.9 billion (USD 33.8 billion) or nearly 52 percent of the total spending. The cost of the subsidies and services is projected at KD 3.7 billion (USD 12.7 billion) or 19.8 percent of the total spending.
The Minister pointed out that the current spending in the budget is estimated at KD 15.8 billion (USD 53.8 billion) or 83.3 percent of the total spending and the capital spending stands at KD 3.1 billion (USD 10.7 billion) or 16.7 percent of overall spending.
The capital spending surged by 13.6 percent to finance the execution of the strategic and development projects, he added. He disclosed that the government has allocated in the new budget about KD 6.6 billion (USD 22.3 billion) to finance 521 approved projects.