Oil Price Hike Considered Positive Indication, May Cut Budget Deficit

The estimated budget deficit for 2016/2017 is expected to decrease from KD 12.2 billion to KD 6 billion if the oil price continues to rise and break the $50 per barrel ceiling, reports Al-Seyassah daily quoting high-ranking sources.

Sources pointed out the recent oil price hike is considered a positive indication and it might lessen the budget deficit, especially if the $50 per barrel ceiling is broken as per the calculation of the budget price of $25 in the current fiscal term.

Sources asserted the oil price hike last week resulted in revenues surpassing the 100 percent mark – the biggest increase in 2016 with a price of $44.41 per barrel according to the price announcement made by Kuwait Petroleum Corporation.

 

SOURCE : ARABTIMES

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