The plummeting price of oil will not impact the country's developmental projects, said Kuwait’s oil minister Dr. Ali Al-Omair.
"Our major projects meet the interest of citizens, including services of health care, and education and infrastructure, which will not be affected by the decline in oil prices," said Al-Omair, in reply to a question by a MPs during a complementary session on the law regarding the state’s budget for 2014-15.
Kuwait has one of the strongest fiscal positions among the Gulf oil exporters; it needs a crude oil price of just $54 per barrel for its state budget to break even, according to the International Monetary Fund.
In his comments to the MPs, the minister noted, "So far we have not witnessed a budget deficit, but it may appear in the future if the oil prices continue falling."
Saying that the benefits of the decision taken by OPEC regarding maintaining oil production levels will emerge in the future, the minister added, "Kuwait will not take a single decision or harm its interests through cutting its oil production."
"Kuwait has a single source, so we should diversify our income sources and address any deficit that may appear in the future. We should deal with the reality professionally, notably oil production," he told MPs.
Kuwait produces about 2.7 million barrels per day, according to recent statistics. Last month, Kuwait's cabinet called for practical steps to address the slide in oil prices at a special session convened to examine weakening energy markets.