Kuwait’s economic diversification is delivering impressive results. The nation’s budget deficit shrank dramatically last year. Official financial statements confirm this positive trend. The 2024-25 fiscal year ended very successfully. Consequently, the chronic deficit fell by a substantial thirty-two percent. This improvement occurred despite a notable drop in oil income. Both public spending and overall revenues also decreased.
The deficit dropped to KD 1.05 billion. This figure is down from KD 1.56 billion the previous year. This positive change is largely due to non-oil revenue growth. Kuwait’s economic diversification efforts are clearly working. Non-oil revenues jumped by an impressive 27.5 percent. They reached KD 2.7 billion last fiscal year. This is up from KD 2.1 billion the year before. This surge highlights a strengthening non-oil sector.
Several revenue streams showed significant growth. Taxes and charges rose by a solid ten percent. They reached KD 606 million previously. Revenue from goods and services soared even higher. It increased by a remarkable 36.5 percent. This stream hit KD 1.9 billion for the year.
Furthermore, prudent fiscal management helped. Government spending fell by 8.3 percent. Spending was reduced to KD 23.1 billion. This rationalization effort halted unnecessary squandering. Spending on goods and services fell sharply. It dove from KD 4.6 billion to just KD 3.3 billion. Spending on wages also dropped slightly.
Overall public revenues reached KD 22.05 billion. This was a 6.7 percent decrease year-on-year. The decline was primarily due to lower oil income. Oil revenue fell by 10.8 percent to KD 19.3 billion. This drop resulted from lower global oil prices. Therefore, Kuwait’s economic diversification is a crucial strategic success. It provides a vital buffer against oil market volatility. The nation’s fiscal health is clearly moving in a positive direction.
